Trump: End electric vehicle policy on first day in office, clean energy sector suffers

On my first day in office, I will abolish the preferential policies for electric vehicles. “Trump said at the recent Republican National Convention in Milwaukee.

He also claimed that this could save the American automotive industry, which is heading towards “complete destruction,” and enable American consumers to save thousands of dollars per car.

Trump also emphasized that if he cannot be elected president, the US automotive industry will be “bloodied” by China.

On July 22, four days later, incumbent President Biden announced his withdrawal from the 2024 election, and Trump’s opponent in November became Harris – in the former’s eyes, Harris was easier to deal with than Biden.

And once Trump starts his second term on the presidency, will the series of electric vehicle policies implemented by the Biden administration in the past be aborted? What impact will Trump’s new policies have on the US and even the global automotive industry?

Electric vehicles have a short range, are expensive and bulky. “In contrast to current President Biden, Trump has made no secret of his contempt for electric vehicles. As early as his previous term in 2020, Trump pushed for the cancellation of the fuel consumption standards for cars set by the Obama administration: under the original standards, car manufacturers had to achieve an average fuel efficiency of 5% per gallon of gasoline; In the new cycle from 2021 to 2026, the standard will be lowered to 1.5%.

These (development of electric vehicles) expenditures are actually a new ‘green scam’. “At last week’s Republican Party Congress, Trump once again emphasized that the strategy of developing electric vehicles is not feasible and will only harm the interests of American auto workers. Trump said he wants to save this money for projects such as roads, bridges, and dams. In contrast, Biden has made the shift to electric vehicles one of his top climate and industry policies, and has set a goal of achieving 50% of new car sales as electric vehicles by 2030.

Regarding the electric vehicle mandate mentioned by Trump in his speech, electric vehicle media Electrek emphasized that the Biden administration has not actually issued any so-called “mandatory policies”. In the past few years, the Biden administration has successively passed bills related to the new energy vehicle industry, such as the Bipartisan Infrastructure Development Act and the Inflation Reduction Act. Among them, the Inflation Reduction Act has the greatest impact, but it has not directly mandated the sale of electric vehicles.

In November 2021, the Bipartisan Infrastructure Development Act was passed, involving multiple fields such as roads, bridges, railways, public transportation, and urban infrastructure, with a total value exceeding $1.2 trillion. In December 2022, the US Department of Energy (DoE) announced the first batch of 20 new energy industry related projects funded by the bill, with a total of 20 domestic US companies participating and receiving a total of $2.8 billion in funding support.

The Inflation Reduction Act was passed by the US Congress in August 2022. Its main content includes investing approximately $430 billion over the next decade, including $369 billion in subsidies for climate and clean energy to support the production and investment of electric vehicles, key minerals, clean energy, and power generation facilities. The Inflation Act stipulates that American consumers can receive a total subsidy of $7500 for purchasing clean energy vehicles that meet the requirements, but it must be produced and sold in the United States or North America as a prerequisite.

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