[News] Trump Plans to Overturn Biden’s EV Policies and Impose Tariffs on Battery Materials

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The U.S. President-elect Donald Trump is set to take office soon. According to a report from Commercial Times, citing Reuters, his transition team is reportedly planning to cut electric vehicle subsidies and impose tariffs on battery materials to boost domestic production and reduce reliance on automobiles, components, and battery materials from China.

A Reuters report on the 16th indicates that amid a slowdown in the U.S. electric vehicle transition and the rapid growth of China’s electric vehicle industry driven by extensive subsidies, the incoming Trump administration intends to carry out comprehensive reforms, overturning Biden’s support for electric vehicles and charging stations.

Moreover, Trump’s transition team is also planning to impose tariffs on all global batteries, critical minerals, and charging components to boost U.S. production, while negotiating case-by-case exemptions with allied nations, the report notes.

The transition team’s goal is to redirect funding toward national defense priorities to secure a stable supply of batteries and the critical minerals required for their production. As the report highlights, this includes ensuring a supply chain free from reliance on China for these essential materials.

According to Reuters, the document states that while batteries, minerals, and other EV components are deemed “essential for defense production,” electric vehicles and charging stations are not.

Currently, the Biden administration offers consumers up to USD 7,500 in tax credits for purchasing electric vehicles, as the report highlights. However, according to Reuters, the Trump transition team reportedly intends to overhaul U.S. electric vehicle policies, including eliminating EV tax credits and revoking the Biden administration’s regulations on emissions and fuel economy standards, which would allow automakers to produce more gas-powered vehicles.

However, as Reuters notes, these policies could deal a setback to U.S. EV sales and production, especially as many legacy automakers, such as General Motors and Hyundai, have recently expanded their electric vehicle lineups in the U.S. market.

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