Among the slew of executive orders signed by President Trump last night is one revoking former President Biden’s 2021 executive order setting EV targets and emissions standards.
Biden’s order calls for 50% of all new passenger cars and light trucks sold in 2030 to be zero-emission vehicles, including battery electric vehicles, plug-in hybrid electrics or fuel cell electric vehicles. It also directed the US Environmental Protection Agency (EPA) to develop stricter emissions standards to achieve it. The EPA finalized the rule in March 2024, with a reduced target of 30% by 2032, including hybrids and not just pure EVs.
Transportation is the largest source of greenhouse gas emissions in the U.S., and a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year, the EPA says, contributing to rising global temperatures. According to the American Lung Association, children are also disproportionately affected by vehicle exhaust gas.
Trump lumped the Biden EO change with dozens of others, saying “climate extremism has fueled inflation and overwhelmed businesses with regulations.” But he has criticized government efforts to promote electric vehicles, including state-level calls for automakers to sell only electric vehicles by a certain date.
“We will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred promise to our great American auto workers,” Trump said in his inaugural address. “In other words, you will be able to buy the car of your choice.”
The Biden administration denied that its EV push was a mandate. And the United Auto Workers (UAW) endorsed Biden and, later, VP Kamala Harris for president.
Trump freezes money for network charging
A major barrier to EV adoption is the availability of chargers, so a 2021 infrastructure bill signed by Biden allocated $5 billion over five years for a nationwide EV charging network. That, too, is on the block, with Trump freezing the funds left over from the distribution in a separate executive order.
“All agencies will immediately stop disbursing funds appropriated through the Inflation Reduction Act of 2022…or the Infrastructure Investment and Jobs Act…including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program and the Charging Infrastructure Discretionary Grants Program and Fuel, and shall review their processes, policies, and programs for awarding grants, loans, contracts or any other financial disbursement of such appropriated funds for consistency with the law and the policy described in this order.”
Electric vehicle charging stations have been slower to materialize than expected, drawing bipartisan criticism. In anticipation of Trump taking office, the Biden administration released $635 million for more charging infrastructure earlier this month.
What about the EV tax credit?
Another big Biden EV effort is the $7,500 federal tax credit. Trump, however, says his administration could remove it.
In an effort to “promote true consumer choice,” Trump is “considering eliminating unfair subsidies and other misguided government-imposed market distortions that favor EVs over other technologies and effectively mandate the purchase of them by individuals, private businesses and government entities alike, making other types of vehicles unaffordable,” he said on Monday.
The tax credit has provided huge discounts to tens of thousands of qualified buyers. It’s part of the Inflation Reduction Act and runs through 2032. Trump can’t unilaterally repeal it, though he can push Congress to act.
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In a November letter to Trump’s transition team, the Alliance for Automotive Innovation — whose members include Ford and GM — urged him to keep the tax credit, The Verge reports.
The tax credit has “fueled investment in domestic EV and battery manufacturing and increased good-paying jobs in automotive communities across the industrial base,” the alliance said. “The incentives help ensure that the U.S. continues to lead in manufacturing critical to our national and economic security.”
The alliance also noted the stiff competition American brands face from China’s auto industry, given its dominance over the battery supply chain and manufacturing power.
“The electric vehicle market is evolving rapidly as Chinese competitors take advantage of favorable cost structures,” Ford said in August when it announced its scaled-back EV ambitions. “An affordable electric vehicle starts with an affordable battery. If you’re not competitive on battery cost, you’re not competitive.”
At CES, Honda told reporters it still plans to convert to an all-electric lineup, but may slow the pace of that if demand weakens during the Trump administration. Consumers can still go for an EV, considering their many benefits, including smoother handling, quick acceleration, quiet cabin noise and no dirty exhaust.
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About Emily Forlin
Senior reporter
