Trump’s Latest Assault on EVs and a Curious Friendship

Donald Trump, the Republican presidential candidate, has recently reiterated his opposition to electric vehicle (EV) companies in the U.S., while simultaneously expressing a desire to draw the industry’s biggest player closer to him.

Trump Takes On EV Tax Credits

In a recent conversation with Reuters after a campaign event in Pennsylvania, Trump voiced his disapproval of the country’s EV tax credits. The former president stated, “Tax credits and tax incentives are not generally a very good thing,” when probed about his views on the current scheme.

At present, EVs in the USA are eligible for federal tax credits of up to US$7500 (A$11,170). However, under the current administration led by President Joe Biden, stricter rules around vehicle and battery sourcing have been put into place.

Trump’s Pledge Against EVs

Trump has previously pledged to abolish these tax credits and has also vowed to end the country’s “electric vehicle mandate”, despite no such requirements being in place.

Musk On Trump’s Radar

Interestingly, when asked if he would consider inviting Tesla’s CEO, Elon Musk, to become an advisor or possibly take a cabinet position if his bid for a second term of presidency is successful, Trump confirmed that Musk is on his radar.

Speaking highly of Musk, Trump remarked, “He’s a very smart guy. I certainly would, if he would do it, I certainly would. He’s a brilliant guy.”

Despite facing attacks on the US EV industry, which Tesla dominates, Musk publicly endorsed Trump’s presidential campaign last month.

Trump’s Misconception about EV Mandates

Earlier in the month at the National Association of Black Journalists conference, Trump once again made an incorrect claim about the US Government imposing mandates that will require EV sales to reach 100 per cent.

Trump stated, “They’re mandating that you buy an all-electric car. Elon Musk endorsed me, and he’s a friend of mine, he’s a good guy and a smart guy. But I’m against everybody having an electric car.”

The Reality of EV Targets

While the US Environmental Protection Agency (EPA) does have a target for EVs to make up between 35 to 56 per cent of new vehicle market sales by 2032, this isn’t an enforcement or mandate. Rather, it’s an outline of what carmakers will need to do to meet broader emissions regulations across their fleets.

Trump’s Tariff Plans

Furthermore, Trump has also pledged to impose a 100 per cent tariff on vehicles made in Mexico for Chinese companies if he’s reelected later this year, as brands like BYD look to build factories there. In May, the current Biden Administration raised the tariff on certain Chinese imports, including EVs, from 25 to 100 per cent, in addition to the existing 2.5 per cent duty tax on all vehicles imported to the US.

Final Comments

It remains to be seen what will come from Trump’s latest threats to the EV industry and his unexpected camaraderie with Elon Musk. However, it’s clear that the future of electric vehicles in the U.S. will be influenced by political decisions, making the next election all the more pivotal for the automotive industry.

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