With plans to end the Green New Deal and revoke the electric vehicle mandate, President Trump made a pledge Monday to save the nation's auto industry.
“I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump said during his inaugural address.
How will this affect the nation? How will this affect American auto workers?
On January 20th, The White House published an executive order containing many policy changes that will impact the automotive industry.
Seeking to eliminate federal tax credits for EV purchases, halt funding for EV charging stations as well as relax vehicle emission standards, The Verge said. This is meant to slow down the nation's transition to electric vehicles and potentially increase greenhouse gas emissions from the transportation sector.
Environmental groups have raised many concerns regarding these changes, claiming that they can hinder efforts to combat climate change, according to the Associated Press.
This halt in funding for EV infrastructure can affect ongoing projects across various states, which could lead to potential disruptions in development, Politico said.
“We will build automobiles in America again at a rate that nobody could have dreamt possible just a few years ago,” President Trump said.
This impacts support for domestic manufacturing, policy focus, economic impact, as well as the impact on workforce and technology.
the executive order is poised to reshape the automotive landscape by slowing EV adoption and altering the trajectory of environmental and economic policies affecting both the nation and American auto workers.
Major automakers such as General Motors and Ford have made significant investments in EV technology in recent years, according to Barron’s, the policy shift presents a complex scenario for them as they navigate new regulatory frameworks.
This could affect the pace of innovation as well as the availability of electric vehicle-related products and services. Companies involved with battery production, charging infrastructure and related tech may reassess their strategies due to the changing policies, Fast Markets said.
Surveys indicate a growing interest in sustainable transportation options among consumers, though affordability and infrastructure availability remain critical considerations, according to CNN.
The policy changes may therefore impact consumer choices and market dynamics in the automotive sector.
While the administration aims to bolster traditional automotive manufacturing and protect associated jobs, this move may slow the nation's progress toward reducing greenhouse gas emissions and hinder the growth of the EV market, the Associated Press said.