President Trump Didn’t Exterminate EV Credits On Day 1

It didn’t take long. On his first day back in the White House, newly inaugurated President Donald Trump scrapped an industry-supported goal to hit 50 percent EV sales by 2030. The returning president also halted a $5 billion fund to pay for electric car charging stations, called to end California’s ability to self-determine emissions rules, and though he didn’t enact this final one, said he would consider ending tax credits for electric vehicles. So the credits are safe, for now.

Trump May Ask The EPA To Roll Back Emissions Rules

The 50 percent EV target was a Biden-administration executive order. It wasn’t binding (rather more of a goal), but automakers, who desire stability due to development schedules that run longer than most administrations, were on-board. General Motors, Ford, and Stellantis had said they aspired to hit the target, which was also supported by the United Auto Workers union.

Trump said that he plans to have the EPA reconsider more strict emissions rules set by the Biden administration. The rules, which were finalized in March 2024, were set to curb greenhouse gases and other harmful emissions from new vehicles from 2027. 25 states had sued the EPA in an attempt to block the new rules.

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CEO José Muñoz also said that Hyundai would remain committed to EVs and the US market, regardless of what incentives may or may not be offered.

In addition, Trump said he was looking to repeal an emissions waiver granted to California and the 11 states that follow it. The waiver, which was granted in 2024, gave the state permission to implement a 100 percent ZEV new vehicle requirement by 2035.

New Administration Will “Consider” Eliminating EV Incentives

Trump said that his administration should consider “the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase.” That refers to the $7,500 consumer tax credit for EVs that was part of Biden’s Inflation Reduction Act, which helped to create vehicle and battery manufacturing jobs in the US and boost EV sales.

The plans were thin on details and actions, but Trump promised to withdraw from the Paris Climate Accord and end leases to wind farms. He said that he would “empower consumer choice in vehicles, showerheads, toilets, washing machines, lightbulbs, and dishwashers,” suggesting that anything that was done in the name of efficiency by prior legislation could be removed.

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Trump Dialing Back Emissions Regulations To Pre-COVID Levels

Gas cars will be dirtier, and charging stations won’t be supported, according to a new report.

Trump said in his address, “We will build automobiles in America again at a rate that nobody could have dreamt possible just a few years ago.” A statement that will likely be true as automakers including BMW, Mercedes-Benz, Hyundai, Kia, Honda, Volkswagen, and others are nearing completion on new and expanded plants built thanks to the Biden administration’s electric vehicle incentive package.