On January 29, 2025, President Donald Trump signed an executive order aimed at eliminating what he calls the “electric vehicle mandate” imposed by the Biden administration. Trump’s action reflects his ongoing opposition to what he views as a misplaced focus on EVs by Biden and other Democrats. The order is part of a broader strategy that Trump promised during his campaign to roll back policies he believes hinder economic growth and innovation, particularly those promoting electric vehicle adoption. Trump’s approach to curbing U.S. greenhouse gas emissions contrasts sharply with Biden’s pro-EV policies.
Trump’s executive order specifically targets policies that encourage the shift to electric vehicles. The order claims to eliminate the so-called “electric vehicle mandate” and instead seeks to promote “true consumer choice” by removing regulatory barriers. While Biden’s policies didn’t impose an EV purchase mandate, they incentivized EV adoption through subsidies, tax credits, and stringent emission standards for automakers. Trump’s order aims to undo these policies, including repealing a $7,500 federal tax credit for new EVs, and considers eliminating other incentives that favor electric cars over gasoline-powered vehicles.
The executive order also challenges state-level emission waivers granted to states like California, which have stricter emissions standards than the federal government. California’s waiver allows the state to set a target to phase out the sale of new gasoline-powered cars by 2035, which impacts several other states that follow California’s lead. Trump’s administration has expressed intentions to revoke this waiver, potentially undermining the state’s authority to lead on emissions standards. This rollback could complicate efforts to address climate change and reduce transportation-related greenhouse gas emissions in the U.S.
Halt to EV Charging Station Funding
Another key element of Trump’s executive order is the immediate pause on billions of dollars allocated for EV charging stations. These funds, approved through the Inflation Reduction Act and the bipartisan infrastructure law, were intended to build the infrastructure necessary to support widespread EV adoption. Biden’s administration set a target to create 500,000 charging stations by 2030. With more than 200,000 publicly available charging ports already operating across the country, the pause could slow the progress of building out the necessary infrastructure for electric vehicles. The delay could frustrate consumers and automakers who rely on this network to support their transition to electric vehicles.
In contrast to Trump’s stance, Biden’s administration set ambitious goals for EV adoption. One of Biden’s primary targets was for electric vehicles to account for 50% of all new vehicle sales by 2030. The Biden administration also pursued stricter vehicle emissions standards through the Environmental Protection Agency (EPA), with the goal of reducing greenhouse gas emissions from the transportation sector. The EPA’s tailpipe standards incentivized automakers to electrify their fleets to comply with tighter limits on carbon pollution. Additionally, the National Highway Traffic Safety Administration (NHTSA) introduced fuel-efficiency rules that raised required mileage standards, further driving automakers toward electric and hybrid models.
Status of EVs and Market Challenges
Although the U.S. saw steady growth in EV sales, accounting for 8.1% of new vehicle sales in 2024, the pace of growth slowed compared to previous years. EVs still come with a higher upfront cost, even as manufacturing efficiencies and declining battery prices have made them more affordable. Several automakers have also tempered their ambitious EV plans. For example, Ford scaled back its plans for electric SUVs, opting for hybrid models instead, and General Motors delayed production at an EV battery plant. These changes reflect the ongoing challenges facing the EV market, including cost, infrastructure limitations, and consumer demand.
Trump’s executive order could result in temporary spikes in EV sales as consumers rush to take advantage of existing subsidies before potential policy changes. However, the long-term implications of this policy shift are significant. The U.S. transportation sector is responsible for more than half of the nation’s greenhouse gas emissions, and a slowdown in EV adoption could hinder efforts to meet emission reduction goals. Trump’s rollback of clean vehicle standards, coupled with reduced incentives for EVs, may make it harder to achieve climate targets and accelerate the transition to cleaner energy sources. Legal challenges from environmental groups are expected, as they aim to preserve the progress made on reducing emissions and tackling climate change. These rollbacks could ultimately raise prices, increase pollution, and reduce the competitiveness of the U.S. automotive sector in the global market for clean technologies.
