On his first day back in office, President Donald Trump signed a series of executive orders aimed at dismantling key aspects of his predecessor’s policies. Among the most notable moves was the revocation of a 2021 executive order by Joe Biden that sought to ensure 50% of all new vehicles sold in the U.S. by 2030 were electric.
Rolling Back Biden’s EV Policies
During his campaign, Trump repeatedly criticized what he called an “EV mandate,” referring to stringent emissions standards that effectively pushed automakers toward electric vehicle (EV) production. On Monday, he followed through on his pledge by directing the Environmental Protection Agency (EPA) to reconsider its recent rules mandating that between 30% to 56% of new vehicle sales by 2032 be electric.
These rules, finalized in 2024, required aggressive EV adoption to meet emissions goals, but Trump’s executive order seeks to dismantle them in favour of consumer choice.
President Trump in his inauguration speech today: “With my actions today, we will end the Green New Deal and we will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred pledge to our great American auto workers.” pic.twitter.com/VepBl7LmLf
— Sawyer Merritt (@SawyerMerritt) January 20, 2025
The executive order also halts distribution of unspent government funds from a $5 billion federal program designed to expand the nation’s EV charging network. This move is expected to slow the rollout of charging infrastructure, which had been a key component of Biden’s clean energy strategy.
Implications for the Auto Industry
The rollback of EV regulations has significant implications for automakers. Major U.S. manufacturers like Ford, General Motors, and Stellantis had already begun transitioning toward electrification, investing billions in EV development. Many had supported Biden’s 50% EV sales target by 2030, viewing it as a predictable regulatory framework that helped them plan investments.
However, Trump’s reversal could create uncertainty. Automakers now face a fragmented regulatory landscape, where federal policy is in flux, but state-level mandates still exist. Additionally, removing incentives for EV adoption could impact consumer demand, making it harder for manufacturers to justify large-scale EV investments.
Public and Political Reactions
Trump’s decision to revoke the EV mandate has been met with mixed reactions. Supporters argue that eliminating government-imposed targets allows the free market to dictate the pace of EV adoption, ensuring that automakers are not forced to build vehicles consumers do not want. Critics, however, contend that the move undermines climate change initiatives and could slow the U.S. transition to cleaner transportation technologies.
What’s Next?
Trump’s move to freeze EV infrastructure spending and reconsider tax credits for EV purchases adds further uncertainty to the future of the EV market in the U.S. While the administration has signaled that it wants to support domestic manufacturing, the extent to which these policy changes will benefit or hinder the industry remains to be seen.
