The transition team of the new U.S. president, Donald Trump, is recommending radical changes aimed at cutting support for electric vehicles and charging stations, and strengthening measures that block the entry of cars and materials for battery production from China.
According to the “Reuters”, which cites a document from the new U.S. administration that it has accessed, the recommendations, which have not been disclosed, come at a time when demand for electric models in the U.S. is stagnating, and the heavily subsidized Chinese electric vehicle industry continues to grow, partly due to its battery supply chain.
During the election campaign, Trump promised to relax regulations on fossil fuel-powered models and reverse what he called President Joe Biden’s electric vehicle mandate.
According to “Reuters”, Donald Trump’s transition team goes further and even recommends imposing tariffs on all materials necessary for battery production, in a clear attempt to boost U.S. production and later negotiate individual exemptions with allies.
These new recommendations are seen as a departure from the policies followed by the Biden administration so far, and could affect the sales and production of electric vehicles in the U.S. at a time when brands like General Motors and Hyundai have recently introduced a broader range of electric vehicle offerings in the North American market.
Additionally, the cut in support for the purchase of electric vehicles may also affect Tesla, led by Elon Musk, who provided significant financial support to help elect the new president of the U.S. He believes that the end of the $7,500 subsidy for consumers purchasing electric vehicles is a measure that would slightly harm Tesla’s sales, but would “devastate” its competitors in the electric vehicle market, including General Motors.
