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Trump Moves to Roll Back Biden's EV Incentives with New Executive Order

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Trump Moves to Roll Back Biden’s EV Incentives with New
President Donald Trump signs executive orders in the Oval Office of the White House on January 20, 2025 in Washington, DC. Trump takes office for his second term as the 47th president of the United States. Getty Images/Anna Moneymaker

In a move that could reshape the future of electric vehicles (EVs) in the US, President Donald Trump signed an executive order on Monday aiming to reverse many of the electric vehicle incentives implemented under President Joe Biden.

Trump's actions are consistent with his past campaign promises to scale back the push for electric vehicles, calling the focus on EVs preposterous.

Trump Pushes Back Against Biden's EV Agenda, Targets $7,500 Tax Credit for Purchases

The order, titled "Unleashing American Energy," seeks to eliminate what Trump describes as Biden's "electric vehicle mandate," a focus on promoting EV adoption, TechXplore said.

The executive order includes steps to revoke Biden's non-binding goal of having EVs make up half of all new car sales by 2030.

Additionally, Trump aims to terminate a federal exemption that allows California to phase out the sale of gasoline-powered cars by 2035.

California's ability to set its own vehicle emissions standards has influenced other states to adopt similar regulations, which Trump now seeks to undo.

His executive order also targets the $7,500 tax credit for new EV purchases, which was introduced as part of Biden's 2022 climate law, and could also affect new rules on greenhouse gas emissions from the Environmental Protection Agency.

Trump's Executive Order Delays Biden's Plan for 500,000 New EV Chargers by 2030

Trump's move also puts a hold on billions of dollars in funding allocated for EV charging stations, a key component of Biden's climate law.

According to AP News, Biden's plan aimed to build 500,000 new EV chargers by 2030, but Trump's pause could delay progress on this goal.

The decision has raised concerns from Democrats, with Rep. Frank Pallone calling Trump's actions illegal, emphasizing that withholding funds would jeopardize jobs and investments.

Despite a recent slowdown in EV sales growth, EVs accounted for 8.1% of new car sales in 2023, a slight increase from the previous year.

Automakers have continued to invest in EV production, though some have scaled back investments amid slowing demand.

Trump's executive order appears to focus on ensuring consumer choice and making gasoline-powered vehicles more competitive, while possibly undoing progress made in the EV sector under the Biden administration.

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