POTUS Trump orders EV policy U-turn to save US auto industry
Dramatic shift for new US leadership
Newly-elected President Donald Trump has come up with a bold plan for the United States of America. As he was sworn in for his second term as POTUS, his inaugural address has given us a glimpse of new policies that could set the stage for significant changes not just in the American automotive sector, but also have an effect in the global automotive industry.
Trump has declared a national energy emergency, which is an agenda to boost domestic fossil fuel production and slash energy costs within the first year of his administration.
"America will be a manufacturing nation once again, and we have something that no other manufacturing nation will ever have - the largest amount of oil and gas of any country on Earth. And we are going to use it," said Trump during his inauguration speech.
Along with his plans to increase oil production in the United States, Trump has also reversed outgoing President Joe Biden’s electric vehicle mandates and climate-focused policies as an aim to revitalize the American auto industry.
“We will build automobiles in America again at a rate that no one could have dreamt possible just a few years ago,” said Trump. He plans to repeal the Biden administration’s goals to make 50% of US new car sales to be zero-emissions vehicles by 2030, along with potentially putting higher tariffs on imported vehicles and reduced EV incentives.
Trump sees this as a move to protect American automakers since car manufacturers, especially those from the PRC, have started to build manufacturing facilities in places like Mexico and Canada.
While the rollback on EV policies could benefit car manufacturers that are yet to transition into full electrification, it could have a big impact on those who have already invested billions into EV development. Among those include US automakers such as Ford and General Motors.
Environmental agencies and other car manufacturers will definitely have something to say about Trump's plans for the world's largest economy. Whether for the good or bad, let’s see how this plays out after four years.
