Amid a flurry of other executive orders, newly inaugurated 47th U.S. President Donald Trump has signed at least one with a direct effect on the U.S. automotive industry, including removal of the federal EV tax credit and stringent new fuel economy requirements from the Biden administration.
Per reporting by The Verge, the executive order “Unleashing American Energy” from Trump covers multiple topics related to the auto industry and aims to change the regulatory landscape.
The executive order from President Trump does not appear to directly eliminate the EV tax credit, which offers up to $7,500 credit for qualifying new electric vehicles and smaller amounts for certain used EVs. However, it does refer to “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies,” which likely includes the EV tax credit.
The wording seemingly leaves some room on whether or not Trump will axe the EV tax credit itself, though many other parts of the Biden administration’s electric vehicle initiatives seem likely to be scrapped outright. GM and other automakers previously urged Trump to keep the tax credit while supporting his reduction in fuel economy standards.
The executive order also does not refer directly to the Biden-era NHTSA’s 50.4 mpg fuel economy mandate, which was to take effect for new vehicles by 2031. This fuel economy standard was itself reduced from a previous benchmark of 58 mpg by 2031. The order does not specify an exact fuel economy standard but instead instructs the EPA to consider “eliminating the ‘social cost of carbon’ calculation” in determining emissions standards.
One Biden era initiative that is clearly named in the order is the $7.5 billion fund to subsidize EV charging station construction. Once again, the program is not eliminated outright but is “paused” until “processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements” can be reviewed for their compliance to law and policy, after which funding payments may continue.
Another section, which The Verge says relates to “tailpipe emission standards,” actually appears to refer to increasing domestic oil production and mining for rare earth minerals. The section, “Sec. 3.,” says that all agencies should review their policies for “agency actions that impose an undue burden” on the development of “oil, natural gas, coal, hydropower, biofuels, critical mineral, and nuclear energy resources.”
Interestingly, in regard to Trump’s claimed interest in acquiring Greenland, the Danish possession has large oil and gas reserves, as well as rare minerals useful in EV battery production. The 47th President’s “Unleashing American Energy” order’s Section 3 interest in critical mineral and petroleum development, cited above, matches closely with the resources found in Greenland.
In summation, the executive order seems to leave the fate of the federal EV tax credit hanging by a thread, but does not commit Trump to its outright elimination at this point. Similarly, charging infrastructure funding is paused for review rather than immediately axed, with disbursement of the funds to be eventually resumed “consistent with any review recommendations.”
Comments
“Propulsion Utopia” is getting a serious reality check.
Do not need a EV, but would like to see V8 and W12 again… seems the new richs not same desire
Also don’t NEED a V8. Let people buy what they want. Why can’t there be a balance between ICE and EV? It baffles me how people are on either side of almost every issue in this country and can never come into the middle. Also, do yall really think this credit is gonna go away with Elon Musk in his right ear?
I agree with you. People are too extreme on both ends of this matter.
What gets missed is the green left is pushing to get people back to cities. They want to force people into walkable cities with only mass transit.
They want to goal is to remove private owned vehicles.
Then if you travel you would go so by train. This works great in Europe but they are just about the size of Texas and it is not practical here.
Also most fo not want to be in these cities with the crime and issues they have.
I have also noted they want us on electric everything. Stove, heating, car, trains everything. This makes it easier to control people.
Bingo. And their 15 minute cities. Not everyone wants to live under millions of other people.
Yep, even archie bunker is right.
I agree with you. I don’t mind having EV’s on the market. They work for some people and don’t work for others. There can be a healthy mix of EV’s, hybrids, and ICE vehicles so that people can choose what is best for them. The only issue I have is the $7500 tax credit…that should become a manufacturer rebate, not something funded by our tax system. If a tax subsidy needs to exist, it should be a lot lower than $7500, perhaps in the $1000 range.
Sounds feasible and reasonable. Would you be okay with the billions of our taxes going to oil subsidies reduced as well?
For the billionth time, oil companies dont receive subsidies. They don’t get government checks for every barrel of oil they extract, in fact the opposite is true where they pay the gov a royal load for every barrel extracted. Googling oil subsides only brings up fring group and activist pages. No news reports or court records.
Agreed. Though big oil dont get checks as uhum someone suggests they get big benefits for each well drilled. Would it all cost them the same per gallaon of gas if it were not present…NO. And not to mention what we spend in the MEast to keep oil flowing because that is primarily why we went there.
I could agree on an amount or that its solely applied to NA built cars since the NAFTA exists but to say none?…then I say fine…take away all the tax write offs of big oil and remove our tens of billions spent on keeping th e military in the MEast to keep the water ways open for oil flow which if it was not would cause your gas prices to shoot thru the rooff and more than just 3 bucks a gallon generally…then were all on a level playing field and see what product wins.
There is NOBODY creating regulations and mandates to force V8 adoption, lol. There are MANY regulations and mandates forcing EV adoption. Get real.
musk wants this eliminated in order to put his competitors like GM in a less than favorable competitive position vs Tesla. Tesla reportedly is in a lower cost position & will be offering an Equinox knockoff shortly.
Absolutely. But if it comes to pass I say GM tack a price hike on the profitable vehicles they must have…til then #boycottTESLA just because of his dirty about 2face.
Elon is one of the biggest losers of ALL time. He is smart and creative yes..but you can tell he was either pulled out of his mom’s p ussy a bit too early or he was left in her for too long. You can tell he looks border line r etarded! Look at his eyes and face. And his hair before he got hairplugs.
Elon Musk has expressed support for ending the federal tax credit for electric vehicles.
citoc8,
Elon Musk loves the idea of eliminating federal tax credits on EV’S, it disadvantages his competitors. Elon Musk receives billions of dollars from the federal government the amount is staggering.
Elon Musk is on the autism spectrum scale. He has Asperger’s amongst other things.
All of Elon musk’s 12 children were ”fathered” using IVF or surrogacy. It is not known whether the surrogates used IVF or artificial insemination.
Look it up, this is all public knowledge.
If you want to curtail excessive federal spending, a good place to start is getting rid of Elon Musk and stop giving him tens of billions of dollars.
Agreed! You can have whatever you want, as long my tax dollar is not helping you to get it!
Why should taxpayers chip in for any purchases made by someone else? Elon is against the tax credit; he does not need it to sell his vehicles. How do people feel about someone with enough money to buy an expensive car and someone helping pay for it that can’t afford a new car? It is like Biden’s college payoffs, which use tax money from people who did not attend college or paid off their loans on their own.
It’s a tax cut for people that buy an EV, typically going to the middle class. People literally getting to keep more of their own money.
Are you as mad at the trillions in tax cuts the GOP gives to billionaires and corporations?
So you approve of the Fair Tax Act introduced by Buddy Carter? We could eliminate taxes on everything except have just sales to pay when anyone (or any company) buys something. No taxes on what you make, earn, save, invest, or on your property. That also means no tax breaks for anyone and no loopholes for the rich or corporations to exploit. You only pay tax on the things you buy and you know exactly how much that amount is at that time.
Yep I could live witht that but they would rather have the tax code as is to be used by the have and have nots who can use it to write off anything they want with their LLCs and garbage that the average Joe can’t. If one thinks that a small business does not write off EVERY DROP of gas they purchase that you and I can’t just because they uhum travel to their business we are fooling ourselves. And thats also why they dont want 80k auditors cause they ant coming after my miniscule income.
Sales taxes are regressive and mostly hurt the poor and middle class.
Make no mistake that this proposal is meant to help the billionaire oligarchs now running this country.
John,
Sounds good – never happen.
If it did, by the time Congress signed it into law it would have so many loopholes favoring themselves and the rest of the rich that it might wind up being worse for the middle class.
You must remember most of the people in Congress are rich, the others are aspiring to be rich. They are not going to pass any laws that disadvantage themselves.
TRUMP…..PROMISES MADE PROMISES KEPT!
I believe the people who want an EV should be able to buy an EV, don’t force us to buy an EV like the last Administration was doing. Also, make EV’s MORE AFFORDABLE!!! There is no way in H@!! I am going to buy a $100k Silverado, Sierra, or Hummer. That is down right insane!!
Now if that Sierra EV was priced around $65k, then I would go drive one and consider, but right now my 450HP 2018 Denali with tuned 6.2L gets 24 mpgs on highway going 70 mph and takes me 3 minutes to fill up, and gets over 400 miles to a tank. It also goes 0-60 in about 5.5 secs. I’m happy with it!! GM give me REASONS and EXCITEMENT to upgrade.
The party is over. It is time for GM to face the music. 🎶
Pipe Fitter 48, You haven’t seen your doctor about adjusting your meds. yet have you.
If you were 10 years old when you were admiring a 58′ Corvette that makes you 76 – 77 yrs. old. You have got to take care of yourself. How about going out into the garage and taking a little nap in that 72′ vette of yours.
Endeavor to persevere,
Ivan.
Look here is the hard cold harsh reality. Trump is in office for 4 years. If we are lucky JD is in after him. If not the laws being killed now on EV can come back just as fast as they are killed.
Also we still have a fight with CARB. They are not just going to give up and they will fight back.
This the deal for the future We will see companies leverage ICE and EV. They want to sell ICE as long as they can but they can’t afford to give up on EV as when the laws come back they will need viable product to retain market share in Ice Banned states.
Now I do not thing the Fed Gov should subsidize the EV products. If the Carb states want to do it fine but not the Fed Gov. Let the EV products earn their place in the market and let the customers who want it support it.
The same issue with the EPA. While I expect Trump to drop the emission’s standards automakers are not going to rush to add more V8 engines or even V6. These laws can be over turned in a matter of years and they can’t afford not to have product to fill the worse case of the far left laws.
We may see short term more powerful engines that can be built like a 2.0 in a Terrain etc. But nothing like a new V6.
With elections things can turn on a dime and automakers can take 6-10 years to change plans.
GM is in a good spot. They have retained ICE and even do have a new V8 coming. But they will continue the EV programs as they will need them at some point. Few automakers can do both programs but GM can.
GM would like to stretch out the time for EV longer to get prices down and ranges up.
Look I’m no EV fan. I am hanging onto my V6 Canyon for as long as I can. I do not a Turbo 3 cylinder anything with a wet Rubber cam belt. These things are going to kill many engine and already are at Ford.
Just because the laws are changed today the activist will try to get back in and could based on how America votes and never understands the fact the people they vote for are doing these laws they hate.
Yes, people sure do vote and not understand the facts. And speaking of votes, you know “the orange one” did not get the majority vote, right? Then the surge in Google searches for “how do I change my vote” was icing on the cake. So uninformed children got him elected and now spiteful uninformed children are running the country.
More liberal woke misinformation promoted by lamestream media. Our President Donald Trump won the popular and electoral vote and he won 85% of the votes in all the counties in the USA…🇺🇸
People are so clueless that the Dems got a defective minded man in office and hid him for 4 years.
CARB will tow the line or face a man who has nothing left to lose. He nearly lost everything to make this country free again. His personal freedom and even his life….TWICE!
It will go to court and it is likely states right will win.
Offing or changing carb is not going to be a sure or easy thing.
Almost everything you post is false, GM’s turbo 3’s have a cam chain, from Google:
“A 1.3L I3 L3T engine, typically found in Chevrolet Trailblazers and Buick Encore GXs, uses a camshaft chain instead of a belt; this is a common design for modern small engines, offering greater durability and longer lifespan compared to a belt.”
The EV and clean energy tax credits and investments have created millions of good paying jobs in the US and brought critical technology and infrastructure to the US.
These are also laws that were passed by Congress that controls the budget.
Per our constitution the president can’t just stop these programs with an EO.
This unconstitutional EO will be fought in court.
Yes, but he controls (across many agencies) how the programs are executed so he can muck up all sorts of things that don’t specifically involve changing the law.
None of these comments address why there are mpg requirements and EV incentives. It’s not just about your choice people. It’s all due to the impact that ICE vehicles have on our climate. After China, the U.S. is the biggest cause of greenhouse gasses in the world and we need to step up and do our share to reduce those. China is way ahead of us in addressing the problem.
If only it were that easy to communicate facts and have them interpreted as such by the millions infected by (that rely on) misinformation presented as fact.
China runs on cheap coal. Their EVs are coal powered. Give me a break.
It’s funny how all the green puppets have no problem with the government telling us what is good for us but fly around in high-octane jets and fancy gas-fueled cars.
The President just told the frauds at Davos what is up.
If he completely gets rid of the ev credit then the red states deserve what they get because as you should know most if not all those battery plants are in red states so it will be interesting to see if they like to poke themselves in the eye. If demand for EVs go down too much more of those battery facilities will be of no use and less employment most likely if not sold off. Meanwhile other countries will continue to invest and build leaving the USA behind and as pres come and go the rifts continue.
I have a 2022 GMC Sierra At4x. It needed a repair and I’ve been without it for 7 months. They stopped production of the part to work strictly on EV’s. I’ve been offered no resolution to my problem, just told to be patient. They need to start making parts for what’s on the road. Think before you buy and definitely find out what the status is on parts.
Trump is wearing a wire in his ear now. They are feeding him answers to questions from the media, so he doesn’t say something stupid or have a tantrum. You can only do so much with technology.