What Trump’s executive orders mean for the EV, auto industries

President Donald Trump put a vow to “end the insane electric vehicle mandate” at the forefront of his campaign (never mind that such a “mandate” doesn’t exist).

And come Inauguration Day, he wasted no time taking steps to fulfill that promise. The flurry of executive orders Trump signed in his first week back in the White House included numerous provisions to change the course of US transportation and climate policy.

“With less support, [EV adoption] will go slower,” Stephanie Brinley, a principal automotive analyst at S&P Global Mobility, told Tech Brew. “However, having said that, it doesn’t mean it’ll stop. Because consumers are the bigger part of this equation.”

Lights, camera, action: In a January 20 executive order titled “Unleashing American Energy,” Trump laid out a new policy “to eliminate the ‘electric vehicle (EV) mandate’ and promote true customer choice, which is essential for economic growth and innovation, by removing regulatory barriers to motor vehicle access; by ensuring a level regulatory playing field for consumer choice in vehicles; by terminating, where appropriate, state emissions waivers that function to limit sales of gasoline-powered automobiles; and by considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable.”

The order:

• Spelled out the administration’s intention to halt funding disbursements from the Inflation Reduction Act and Bipartisan Infrastructure Law, including funding for EV charging infrastructure.
• Included language about Trump’s plans to weaken vehicle tailpipe emissions standards after former President Biden’s administration put in place the strongest-ever standards.
• Rescinded an executive order from Biden that established a goal of 50% of new light-duty vehicle sales having zero emissions by 2030.

That 2021 Biden order “was not a vehicle mandate, but [Trump’s revocation of it] tells the government, it tells the policymakers that creating and developing the environment to support an electric vehicle sales market is less important,” Brinley said.

More importantly from automakers’ perspective, Brinley said, are expected changes to federal regulations on tailpipe emissions and fuel efficiency standards. But perhaps most worrying for auto industry leaders is a proposal that’s still in the works: Trump’s promise to implement a 25% import tariff on goods from Mexico and Canada, countries with which US vehicle production is closely intertwined.

“There’s a little bit of wait and see,” Brinley said, “and settle down and see how it comes together.”

Reaction: In a statement, the Zero Emission Transportation Association––an industry group representing the EV sector––highlighted jobs and investment commitments tied to the US EV and battery sectors, and progress that’s been made on moving supply chains to the US.

Trump’s executive orders “contain some opportunities for securing mineral supply chains, along with the risk of undercutting growth in battery and vehicle manufacturing here at home,” Albert Gore, ZETA’s executive director, said. “All of these sectors are critical to America’s security and future global competitiveness, and merit continued support.”

The Alliance for Automotive Innovation, a trade group representing major automakers in the US, in a statement about Trump’s executive orders, pointed to “a mismatch between current EV market dynamics and the emissions and EV sales targets called for in recent regulations” and expressed support for “a single, national standard to reduce carbon in transportation.”

“We can’t have regulations that push the industry too far ahead of the customer,” John Bozzella, president and CEO of the organization, said. “The customer is in charge. More balance between the regulations and the preservation of customer choice is the goal.”