Trump transition team recommends significant changes to Biden-era EV incentives

President-elect Trump’s transition team is recommending that the incoming administration modify subsidies and tax incentives tied to the adoption of electric vehicles, reversing policies enacted by the Biden administration, according to a document viewed by Reuters.

Trump’s transition team is also recommending harsher restrictions on battery and battery component imports, as well as easing some of the Biden mandates regulating the production of internal combustion engines. The restrictions on batteries and battery components will apply to all nations that export into the U.S. with individually negotiated exemptions for allies.

The new recommendations are in addition to plans to eliminate the $7,500 tax credit for EV purchases and to reallocate what remains of the $7.5B to build charging stations to develop domestic battery manufacturing that will bolster the “national defense supply chain and critical infrastructure.”

“While batteries, minerals and other EV components are critical to defense production, EVs and charging stations are not,” according to a document viewed by Reuters.

The timing of the new mandates comes just as domestic automakers are scaling back production of EVs in response to the sluggish adoption of alternative-fuel vehicles.

“When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars and electric vehicles,” Trump transition team spokesperson Karoline Leavitt said in a statement to Reuters.