FYI: Donald Trump has proposed potential policy changes affecting electric vehicles and mentioned a possible collaboration with Tesla’s Elon Musk if he wins the 2024 presidential election.
Trump Considers Axing EV Tax Credits and Bringing Elon Musk Onboard
YORK, Pa. — In a recent interview, Republican presidential candidate Donald Trump disclosed potential policy shifts that could significantly impact the electric vehicle (EV) market and automotive industry if he secures a second term. Speaking to Reuters after a campaign rally, Trump mentioned the possible elimination of the $7,500 tax credit for electric vehicle purchases and suggested he could appoint Tesla Inc. CEO Elon Musk to a Cabinet position or as an adviser.
"I believe tax credits and incentives often fail to serve their intended purpose," Trump remarked when asked about the EV tax credit. "If Musk is interested, I’d certainly consider it. He’s exceptionally smart and has done remarkable things," Trump added.
Musk, who served briefly as an adviser during Trump’s previous administration, resigned after the U.S. decided to withdraw from the Paris climate accord. Despite their past differences, Musk has pledged to support Trump’s 2024 run. Notably, Tesla has not commented on Trump’s latest statements.
Revisiting EV Tax Credit Policies
During his presidency, Trump had aimed to remove the EV tax credit, a provision later expanded by President Joe Biden in 2022. If re-elected, Trump expressed intentions to either overturn current Treasury Department rules that facilitate automakers’ use of the $7,500 credit or push Congress to eliminate the credit altogether.
"I’m a fan of all types of vehicles, be it electric, gasoline, or hybrids," Trump stated. Although he expressed support for EVs, he voiced concerns over their market size due to high costs and battery range limitations.
Proposed Changes to Emissions Standards
Trump also indicated his plans to reverse Biden administration regulations aimed at encouraging automakers to produce more electric and plug-in hybrid vehicles to meet stricter emissions standards. He perceives the demand for EVs as limited and intends to implement policies aligning with that view.
Trade Policies and Tariffs
Additionally, Trump proposed new tariffs to prevent automakers like the Detroit Three from exporting cars made in Mexico to the U.S. and to block Chinese companies from building factories in Mexico for U.S. sales.
"Tariffs are a straightforward solution. It compels automakers to return to America," Trump asserted. He did, however, express openness to foreign automakers establishing U.S. factories and hiring American workers, which he believes can strengthen the domestic automotive industry.
Tech Giants in Trump’s Crosshairs
Trump’s criticism extended to Alphabet Inc.’s Google, labeling them as "a lawless state." He avoided specifying potential repercussions, only suggesting that "Google will face significant consequences."
Trump’s stance on TikTok also remains firm. Although he previously opposed a ban, he suggested that China’s ByteDance could potentially divest its U.S. assets. "It’s difficult to outright ban the app due to free speech concerns," he commented, acknowledging TikTok’s favorable reception of him.
Conclusion
Trump’s statements reveal a blend of support and skepticism towards electric and hybrid vehicles while advocating for substantial changes in trade and tech policies. His possible collaboration with Elon Musk and proposed tariff strategies highlight his broader vision for the U.S. automotive sector.
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Lawrence Jacobs, Editor of Automotive.fyi
