Can Trump Really Slam the Brakes on Electric Vehicles?
Analysts say that even if Mr. Trump is elected and ends federal policies that support electric vehicles, by the time that happens, the market may have reached a level where it would keep growing without government help.
It is unclear whether a Republican-controlled Congress would rescind the tax credits provided by the Inflation Reduction Act. While 20 Republican senators have introduced legislation that would roll back tax credits for E.V. manufacturers and for motorists who buy their cars, many of those manufacturing tax credits have been flowing to businesses in Republican-controlled states, including Georgia, South Carolina and Ohio. That could make some lawmakers reluctant to kill the tax credits.
If Mr. Trump wins the November election and is unable to get Congress to repeal the Inflation Reduction Act, he could amend Treasury regulations to sharply limit who can qualify for tax credits designed to encourage E.V. manufacturing and sales. For example, the Treasury Department could tighten restrictions on cars containing graphite processed in China. All electric car batteries require graphite, and almost all of it comes from China. Mr. Trump could cancel an exception that the Biden administration created this month that allows cars containing Chinese graphite to qualify for federal tax credits.
“If Trump comes through in November that is the obvious target for him,” Adam Panayi, managing director of Rho Motion, a research firm focused on batteries, told an audience of investors in New York last week.
https://www.nytimes.com/2024/05/27/climate/trump-electric-vehicles.html
Add to My Watchlist
What is My Watchlist?
