If President-elect Donald Trump makes good on his threat to end the Biden administration’s support of electric vehicles, the move could clear the way for Chinese automakers to strengthen their position in the global marketplace, analysts say.
During the campaign, Trump pledged to stop the Biden administration’s “insane electric vehicle mandate.” Though no such mandate exists, Trump still could repeal EPA and Transportation Department regulations that are intended to both bolster domestic supply chains for batteries and push domestic carmakers to produce more battery-powered cars and trucks.
Trump also could work with Congress to roll back tax credits in the Inflation Reduction Act for people who buy EVs or credits for manufacturers and battery-makers. And he could increase the Biden administration’s tariffs on Chinese vehicles and Chinese-sourced materials and components for those vehicles.
The moves aren’t expected to stop the growing global demand for EVs and other clean-energy technology, according to a report from Johns Hopkins University’s Net Zero Industrial Policy Lab. But they could make it harder for U.S. companies to compete internationally.
