U.S. President-elect Donald Trump is reportedly planning to end the Biden administration’s tax credit for electric vehicles and impose tariffs on imported EV batteries.
Trump’s advisors also favour adding tariffs on EV charging components and ending requirements for federal agencies to buy EVs, according to presidential transition team documents obtained by Reuters.
These tax credits are “critical to cementing the U.S. as a global leader in the future of automotive technology and manufacturing”, the Alliance for Automotive Innovation, representing companies like Toyota, General Motors, and Ford, said in a letter last month.
The Biden administration offers a US$7,500 tax credit for consumers who buy eligible electric vehicles, under the 2022 Inflation Reduction Act.
While Tesla CEO Elon Musk is one of Trump’s closest allies, Musk said in a July earnings call that ending the consumer tax credit would likely harm Tesla’s competitors more than it would impact Tesla, aiding the company in the long term.
Trump advisors also reportedly support reallocating funds from Biden’s US$7.5 billion (A$11.87 billion) plan to build EV charging stations, and would instead spend the money on battery-minerals processing and defense infrastructure.
The documents recommended expanding export restrictions on EV battery technology to the U.S.’ adversaries, while promoting exports of U.S.-made EV batteries to other nations through the Export-Import Bank.
Advisors reportedly advocated ending Department of Defense programs to develop electric military vehicles.
Jason Miller, a Trump advisor, said the recommendations were made by “outsiders who have no role in charting administration policy”.