President-elect Donald Trump’s incoming administration is preparing to dismantle federal regulations aimed at increasing fuel efficiency and promoting electric vehicle (EV) adoption, sources familiar with the transition team’s plans said. The move aligns with Trump’s campaign promise to ease automotive industry requirements and “end the EV mandate,” although such a mandate does not formally exist.
The Biden-era regulations, finalized earlier this year by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA), set ambitious targets for automakers to shift at least 35% of production to EVs by 2032 and reduce tailpipe emissions. Trump’s team plans to weaken these standards and may direct the agencies to formally reconsider the rules, according to the sources. The move mirrors Trump’s first administration, which reversed Obama-era efficiency standards over a protracted three-year process.
The rollback is likely to appeal to automakers who have criticized the Biden regulations as overly stringent. However, it may hinder the growth of the EV market, already facing challenges in the U.S. Trump’s team also plans to eliminate the $7,500 federal tax credit for EV purchases, which could further slow EV adoption.
The regulatory rollback could also impact Tesla, which has benefited from selling emissions credits to automakers unable to meet federal standards. Looser regulations would likely reduce the demand and value of these credits, presenting a potential financial setback for the company.
Industry representatives, including General Motors, Ford Motor, Stellantis, and Tesla, declined to comment on the reported plans. Meanwhile, the incoming administration’s stance highlights a shift in federal priorities, potentially marking a turning point in U.S. transportation and energy policy.
Source: Reuters
