According to a document obtained by Reuters, the transition team of incoming U.S. President Donald Trump is proposing significant changes to reduce support for electric vehicles and charging infrastructure, as well as strengthen measures to limit the import of cars, components, and battery materials from China. This comes at a time when the U.S. electric vehicle market is experiencing a slowdown while China’s heavily subsidized EV industry continues to grow, largely due to its superior battery supply chain.
The recommendations include imposing tariffs on battery materials worldwide to boost U.S. production, negotiating exemptions with allied countries, and redirecting funding from building charging stations and promoting affordable EVs towards national defense priorities such as ensuring a supply chain free from China for batteries and critical minerals. These proposals mark a shift from the previous Biden administration’s approach, which aimed to encourage a domestic battery supply chain while facilitating a rapid transition to electric vehicles.
Additionally, the transition team suggests eliminating the $7,500 tax credit for consumer EV purchases and clawing back remaining funds from Biden’s plan to construct charging stations. These policies could impact U.S. EV sales and production, particularly affecting companies like Tesla, the leading U.S. EV manufacturer.
The transition team justifies these changes by highlighting the importance of securing critical minerals and materials for defense production, emphasizing the strategic vulnerability posed by China’s dominance in mining and refining essential minerals. The Defense Department has raised concerns about the dependence on China for critical minerals needed for defense technologies, underlining the critical role these resources play in national security.
Transition team spokeswoman Karoline Leavitt stated that Trump’s administration aims to uphold campaign promises and support the auto industry by allowing a balance between gas-powered cars and electric vehicles.
The text discusses potential changes in government regulations regarding climate-damaging tailpipe pollution and vehicle emissions standards. The transition team’s recommendations could lead to looser restrictions on automakers, allowing them to produce more gas-powered vehicles by rolling back emissions and fuel-economy standards previously implemented by the Biden administration. Specifically, the proposal suggests reverting regulations back to 2019 levels, resulting in vehicles emitting about 25% more per mile and having fuel economy around 15% lower compared to the current 2025 limits.
Moreover, the transition team is considering blocking California from enforcing its own stricter vehicle-emissions standards, which have been adopted by more than a dozen other states. This move would reverse a policy implemented by the Trump administration and later overturned by President Biden. California has sought approval from the U.S. Environmental Protection Agency to implement even tougher requirements starting in 2026, ultimately aiming for all vehicles to be electric, plug-in hybrid, or hydrogen-powered by 2035. However, the Biden administration has not yet approved California’s request.
Several proposals put forth by the transition team appear to focus on promoting domestic battery production, particularly for defense-related purposes. Additionally, there are efforts to safeguard U.S. automakers, including those producing electric vehicles (EVs). Some of the proposed measures include:
– Imposing tariffs on imports related to the “EV supply chain,” such as batteries, critical minerals, and charging components. The suggestion involves utilizing Section 232 tariffs, which target national security concerns, to restrict the influx of these products.
– Streamlining environmental reviews to accelerate federally funded projects related to EV infrastructure, like battery recycling and production, charging stations, and critical mineral manufacturing.
– Strengthening export controls on EV battery technology concerning adversarial nations.
– Supporting the export of U.S.-manufactured EV batteries through the Export-Import Bank of the United States.
– Using tariffs as a bargaining tool to enhance access for U.S. auto exports, including EVs, in foreign markets.
– Removing the mandate for federal agencies to acquire EVs. A policy under the Biden administration mandates that all federal purchases of cars and smaller trucks be zero-emission vehicles by the end of 2027.
– Ceasing Department of Defense (DOD) initiatives aimed at procuring or developing electric military vehicles.
It is noted that the Biden administration recently increased tariffs on certain Chinese imports, as mentioned in the transition team document, such as lithium-ion batteries, graphite, and “permanent magnets” essential for EV motors and military applications. These tariff increases were not based on security grounds but on economic considerations.
The proposed changes in regulations and policies could have far-reaching implications for the automotive industry, environmental protection efforts, and international trade relationships. The decisions made regarding emissions standards, vehicle technologies, and domestic production priorities will shape the future landscape of transportation and sustainability initiatives in the United States.
