Donald Trump, who was sworn in as President of the United States on Monday, spent his first day of work signing a decree to end state subsidies for electric cars.
US President Donald Trump signed an executive order on Monday to end government subsidies for new electric cars in the country.
The decree, titled “Unleashing American Energy,” is part of Trump’s effort to reverse previous policy initiatives from the Biden administration.
The executive order calls for a review of existing regulations for electric vehicles. Trump says he wants to eliminate what he calls “unfair” subsidies and market distortions that favor electric vehicles over other technologies.
He argues that this approach limits consumer choice and harms economic development. Among other things, the new president will drop the rule that says 50 percent of all new cars in the United States must run on electricity by 2030.
Trump also criticizes the tax rebates and benefits given to buyers of electric cars due to the so-called Inflation Reduction Act.
The tax rebate was previously intended to make electric cars more accessible to consumers. The decree also includes a halt to public funding of electric car charging stations.
At the same time, the president has instructed authorities to identify regulations that, according to him, impose 'unnecessary burdens on consumers when it comes to free choice of car'.
It is likely a reference to the existing car emissions requirements, which Trump has previously criticized.
This is reported by Bloomberg .
During last year's election campaign, Trump repeatedly accused previous administrations of imposing some kind of “electric car mandate.” Although such a requirement does not formally exist, the president remains critical of subsidies whose sole purpose is to increase sales of electric cars.
Trump has also focused on laws and regulations that require the federal government to support the infrastructure for electric vehicles.
The Biden administration has previously allocated over $7 billion to expand the network of charging stations and additional funds for companies that build everything from battery packs to actual electric cars.
The decree, which was signed on Monday, also includes a relaxation of requirements for car emissions, which could open up for greater production of cars with combustion engines.
Trump has previously implemented similar measures during his first term as president, where he weakened emissions standards from the Obama administration.
Trump believes that the United States can promote the country's economic growth by removing these requirements. Among other things, because it will increase the competitiveness of the automotive industry. That is, according to the president.
The newly elected president argues that drivers should be able to choose which cars suit their needs without the state influencing the market.
The president's criticism of electric cars and the role of the government in their spread has received mixed reactions. While some see it as support for the traditional auto industry, others warn that it could lead to greater climate challenges.
However, the new president is sticking to one thing from his predecessor. Trump has no intention of tampering with the ban on Chinese cars and software that Joe Biden got through shortly before the change of power.
The ban on Chinese cars has already prompted the major Swedish bank SEB to warn that Volvo could be banned in the US. And this even though the brand – like its sister brand Polestar – has factories in the US.
