President Donald Trump has enacted an executive order aimed at dismantling what he refers to as “the electric vehicle mandate” set by former President Joe Biden. This move, made public on Monday, aligns with Trump’s campaign commitments to abandon what he describes as a misguided emphasis on electric vehicles (EVs) by the Democratic administration. The implications of this directive could hinder U.S. progress in combating climate change, which is significantly driven by the combustion of fossil fuels that release greenhouse gases.
In the details of Trump’s executive order, he claims the need to abolish the electric vehicle mandate to promote genuine consumer choice, which he believes is vital for economic expansion and innovation. This order indicates an intention to lift regulatory hurdles that might obstruct consumer access to vehicles. However, it is important to underscore that the Biden administration did not implement any formal mandate requiring the purchase of EVs; instead, the administration’s initiatives were designed to incentivize Americans to transition to electric transportation and push auto companies towards manufacturing these types of vehicles.
The executive order, titled “Unleashing American Energy,” effectively revokes Biden’s aspirational target that aimed for electric vehicles to constitute half of new car sales by 2030. Additionally, Trump seeks to terminate a federal exemption that allows California to begin phasing out the sale of gasoline-powered vehicles by 2035, a ruling that serves not only California but also more than a dozen states that follow its progressive emissions standards.
The language within this order suggests a likelihood of Trump working to nullify a $7,500 federal tax credit for new EV purchases, originally established under Biden’s significant climate legislation from 2022. Furthermore, Trump may also attempt to reverse EPA regulations that tighten restrictions on greenhouse gas emissions and pollution connected to both passenger and commercial vehicles. Echoing his previous administration’s approach, Trump’s latest action recalls initiatives that aimed to relax vehicle emissions standards that were initially established under former President Barack Obama.
As part of this order, Trump has instantly frozen billions of dollars allocated for the establishment of EV charging stations, which were part of the climate initiative known as the Inflation Reduction Act, alongside the bipartisan infrastructure law passed in 2021. Under Biden’s vision, the goal was to create 500,000 charging stations by 2030. However, recent data indicates that as of the end of the previous year, only 214 charging stations funded by federal assistance were operational across 12 states, despite nearly 25,000 projects already in process nation-wide. Nationally, there are over 203,000 publicly available charging points, with nearly 1,000 being instated weekly, doubling the total from 2021.
Democratic Congressman Frank Pallone, who leads the House Energy and Commerce Committee, denounced Trump’s decision to withhold authorized funds as illegal. He criticized Trump for defaulting on commitments, emphasizing that such a freeze could jeopardize many American jobs, highlighting the funding as crucial for domestic manufacturing and sustainable energy investments.
The current landscape for electric vehicles in the U.S. indicates a modest surge, with EV sales making up 8.1% of new vehicle purchases, a slight increase from 7.9% the previous year, despite a deceleration in their growth. Although the cost of EVs has gradually decreased as production ramps up and battery prices decline, they still tend to be priced higher than traditional gasoline vehicles. While manufacturers might view deregulation positively, removing federal incentives could create challenges in selling these vehicles, for which automakers have heavily invested over recent years.
Even prior to this new executive order, some carmakers had begun pulling back on their ambitions regarding electric vehicles. For instance, Ford scaled back its electric vehicle plans in favor of hybrid models, while General Motors postponed operations at an EV battery plant. John Bozzella, the head of the Alliance for Automotive Innovation, expressed concerns over a disconnect between EV sales targets and stringent state regulations, advocating for a unified national standard that effectively reduces carbon within transportation.
Looking ahead, this decision could temporarily boost EV sales as consumers rush to take advantage of remaining tax incentives. However, in the long run, rolling back supportive measures could complicate the U.S.’s ability to meet greenhouse gas reduction targets. Light-duty vehicles are responsible for a substantial portion of the nation’s transportation-related emissions, representing a significant challenge in broader efforts to combat climate change.
Any initiatives to reverse existing regulations are expected to prompt legal challenges from environmental organizations and other stakeholders. Critics argue that these rollbacks threaten the progress made in tackling climate change, potentially leading to increased costs, pollution, and diminished competitiveness at both national and global levels. With the approaching elections, Trump’s relationship with prominent figures such as Tesla’s CEO Elon Musk seems to be evolving as Musk now heads a task force aimed at reducing federal bureaucracy and cutting regulations.
