DETROIT – President Donald Trump pledged to revoke the so-called electric vehicle mandate, and an executive order on day one of his second presidential term signals his intent to undo much of his predecessor’s legacy when it comes to electric vehicle promotion.
But it’s unclear how sweeping the impact will be or whether it will ultimately kill the $7,500 EV tax credit for buyers. Trump’s “Unleashing American Energy” order that references consideration of “the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs” appears to include language to eliminate the credit, for instance.
But policies promoting EV sales are also harder to root out of tax code and Clean Air Act regulations than the executive order might imply, and questions about the president’s ability to undo EV-related legislation suggest legal battles ahead.
Sean Tucker, writing for Kelley Blue Book, noted that some orders could be subject to court challenges, or they essentially acknowledge that the president can’t change laws and instead direct officials to conduct reviews.
“If there’s one lesson to take from a deep read of the executive orders, it’s that all of these changes will take time and some may be blocked,” Tucker wrote. “Agencies will likely change some of the policies Trump has instructed them to change. But that is a slow process with several steps, and those agencies can’t even begin that process yet without leaders in place.”
The EV market and automaker plans have also changed in the years since Joe Biden’s August 2021 executive order on “Strengthening American Leadership in Clean Cars and Trucks,” which Trump revoked Monday. That nonbinding Biden directive set “a goal that 50% of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles.”
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