The Trump team has calls for eliminating the Biden administration’s $7,500 tax credit for consumer EV purchases

Incoming U.S. President Donald Trump’s transition team has proposed sweeping changes to cut federal support for electric vehicles (EVs) and charging infrastructure, while implementing stricter measures to block imports of cars, components, and battery materials from China, according to a document obtained by Reuters.

The recommendations, which have not been previously reported, come at a time when the U.S. EV transition is faltering while China’s heavily subsidized EV industry continues to grow, supported by its advanced battery supply chain. During his campaign, Trump pledged to roll back regulations on fossil-fuel vehicles and reverse what he called President Joe Biden’s EV mandate.

The plan also includes imposing global tariffs on battery materials to incentivize U.S. production, with the possibility of negotiating exemptions with allied nations. These recommendations signal a significant shift from Biden administration policies, which sought to balance domestic battery supply chain development with a rapid EV transition. Under the proposed plan, funds currently allocated for EV infrastructure and affordability would be redirected toward national defense priorities, focusing on securing China-free supplies of batteries and critical minerals.

The transition team also calls for eliminating Biden’s $7,500 consumer tax credit for EV purchases, a move Reuters reported earlier. Such a policy could undermine U.S. EV sales and production at a critical moment for automakers like General Motors and Hyundai, which have recently introduced a broader range of EVs to the U.S. market.

Cutting government support could also impact Tesla, the leading U.S. EV manufacturer. However, Tesla CEO Elon Musk, a major Trump donor, has suggested that losing subsidies would hurt Tesla’s competitors more than his own company.

The transition team proposes reclaiming remaining funds from Biden’s $7.5 billion EV charging station plan and redirecting them toward battery-mineral processing and the “national defense supply chain.” The document argues that while EV components like batteries and minerals are critical for defense, EVs and charging stations themselves are not.

The Defense Department has raised concerns in recent years about U.S. dependence on China for critical minerals like lithium and graphite, which are essential for EV batteries and military technologies. A 2021 report highlighted escalating power requirements for defense technologies and emphasized the need for “assured sources of critical minerals and materials” to maintain national security.

Transition team spokesperson Karoline Leavitt stated that voters gave Trump a mandate to deliver on his promises, including ending government restrictions on gas-powered cars. “When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles,” Leavitt said.

Easing Emissions Standards and Limiting California’s Authority

The transition team’s recommendations would also roll back emissions and fuel-economy standards set by the Biden administration, returning them to 2019 levels. This change would permit approximately 25% more emissions per vehicle mile and lower average fuel economy by about 15% compared to current 2025 standards.

The proposals would further block California from setting its own stricter vehicle-emission standards, which have been adopted by more than a dozen other states. Trump previously barred California from setting tougher standards during his first term, a policy reversed by Biden. California has requested a waiver from the EPA to implement stricter rules starting in 2026, requiring all vehicles sold in the state to be electric, plug-in hybrid, or hydrogen-powered by 2035.

Policy Details to Boost Domestic Production

The transition team’s document outlines additional policies aimed at encouraging U.S. battery production, particularly for defense applications:

• Tariffs on EV supply chain imports: Using Section 232 tariffs, targeting national security threats, to limit imports of batteries, critical minerals, and charging components.
• Accelerating EV infrastructure projects: Waiving environmental reviews for battery recycling, production, and critical mineral manufacturing.
• Export restrictions: Expanding restrictions on EV battery technology exports to adversarial nations.
• Export promotion: Supporting U.S.-made EV battery exports via the Export-Import Bank.
• Trade negotiations: Leveraging tariffs to open foreign markets for U.S.-made vehicles, including EVs.
• Federal fleet requirements: Eliminating mandates for federal agencies to purchase EVs by 2027.
• Military EV programs: Ending Defense Department initiatives to develop or procure electric military vehicles.

These recommendations underscore a focus on national defense and domestic industry protection, potentially reshaping U.S. automotive policy to favor fossil fuels while dialing back the push for widespread EV adoption.