Trump executive order to end electric vehicle subsidies sparks backlash

If President Trump has his way, the auto industry’s transition to electric vehicles will soon reverse itself. It will eliminate tax credits for purchasing electric vehicles, federal subsidies for chargers, and grants and loans to help retool assembly lines and build battery factories.

The executive orders issued by Mr. Trump on Inauguration Day constitute a sweeping rejection of a centerpiece of former President Joseph R. Biden Jr.’s multitrillion-dollar agenda to combat climate change, which Republicans presented as a campaign to ban gasoline cars.

The orders also pose a challenge for automakers that have invested billions of dollars in electric vehicles, in part because the Biden administration encouraged them to do so. But some orders appear to circumvent congressional or federal rulemaking procedures, which could make them vulnerable to lawsuits or even resistance from the Republican Party.

Although billed as a way to revive the U.S. auto industry, the orders could cause U.S. automakers to fall behind if they scale back their electric vehicle programs while Asian and European automakers continue to perfect the technology, analysts say. analysts. Already, 50% of car sales in China are electric or plug-in hybrids, and Chinese automakers like BYD are selling more cars globally, drawing customers away from established automakers, including U.S. manufacturers.

An executive order titled “Unlocking American Energy” signed by the president on Monday directs federal agencies to immediately suspend the disbursement of congressionally appropriated funds that were part of Biden’s efforts to push the auto industry toward emissions-free vehicles exhaust.

Among other things, the funds helped states install fast charging stations along major highways and provided tax credits of up to $7,500 for buyers of new electric vehicles and $4,000 for electric vehicles. buyers of used models. Thanks to these credits, the cost of purchasing some electric cars was roughly comparable to cars with gasoline or diesel engines.