Trump has started his war on electric cars

The Tax Credit as a Tool for Renegotiating the Republican Party’s Control of the Senate and the White House: More Than One Year After the Election

Now Republicans have full control of Washington. And the tax credit appears headed for the trash bin. But that will take time, as will Trump’s efforts to rollback tailpipe emission rules. There will need to be deals struck, legislation written, public comment solicited, hearings scheduled, and more. How much time it takes depends on how aggressive the Republicans are. It’s very likely that Congressional sluggishness, as well as some Republican pushback, result in the incentive still being in the tax code by the end of the year.

The good news is that Congress is likely to abolish the tax credit at some point in the near future. Republican lawmakers have tried several times in the past to kill the credit, most recently in July 2024. None of those efforts went anywhere because the Senate and the White House were controlled by Democrats.

Clean Vehicles: The Trump Era, the Challenges, the Progress, and the Way the U.S. Can Get Over the Tax Cuts

Kathy Harris is the director of clean vehicles at the Natural Resources Defense Council. “But I think what we’ve seen is that these regulations for decades, as EPA has put them out, have really provided significant benefits to not only the auto industry, but also to Americans, to Americans’ wallets, and to public health as well.”

Automakers are pleading for stability, but they’re likely to get everything but. It could be worse because of the president’s plans to impose 25 percent tariffs on Mexico and Canada. Global supply chains are extremely complex, running through many different countries and across borders, and new fees could force companies to start the arduous process of re-engineering those lines. The tariffs will force autos to bring more manufacturing to the US and create more jobs. The dealers, suppliers, and manufacturers are facing layoffs if cars become more expensive, because most experts are predicting price increases.

Trump could confront resistance from his own party. 18 Republicans wrote a letter to the Speaker of the House saying that repeal of energy tax credits would stop development and undermine private investments. The members represent states with the highest level of clean energy investments due to the IRA.

The White House will be most likely to loosen the rules if they target vehicle fuel efficiency and tailpipe standards. The pollutants that can be released and the levels of gas efficiency that the cars they make need to be brought to a certain level. One way for automakers to hit their goals is by selling more electric vehicles. Last time Trump was in office, it took more than three years for his administration to replace Obama-era fuel efficiency standards. Harris thinks agencies may be more efficient and successful in changing rules more quickly. The process could take a long time.

“The executive order is simply directing the agencies to take a look at the regulations,” Harris said. Within 30 days is the deadline for agencies to submit a list of regulations for review.

The Future of Clean Autonomous Vehicles in the United States and the Global Auto Industry: Calling for Public Comments on a New Emissions Regulation

US and global automakers have already backed off some of their more ambitious EV-related promises, but electrics are still coming. There is no clear idea of the long-term future of the US auto industry. Other governments are still pursuing EV-friendly policies, and critics warn they’ll look increasingly toward China’s auto industry to get them through the transition.

In the meantime, automakers will continue to make and sell electric vehicles, and consumers will continue to be able to buy them. Some stricter emissions standards kick in in late 2026, and it usually takes manufacturers some five years to plan and build a car, which means autos following those forthcoming emissions regulations should be built and sold.

Kathy Harris directs the clean vehicles program at the Natural Resources Defense Council. “If an agency wants to repeal a regulation, they need to go through the public process,” she says. That means publishing new proposed rules, taking public comments, going back and forth with the industry, and then publishing those comments. There is a lot of paperwork between the administration and the nixing of EV-related programs.