On Monday, Republican presidential contender Donald Trump hinted at potentially ending the $7,500 tax credit for electric vehicle (EV) purchases, a policy he has long critiqued. In an interview with Reuters following a campaign event in York, Pennsylvania, Trump voiced skepticism about the benefits of tax credits and incentives in general. “Tax credits and tax incentives are not generally very effective,” Trump remarked.
Should he win the presidency, Trump has indicated he might take actions to dismantle the existing framework of the EV tax credit. This could involve reversing recent Treasury Department regulations that facilitate automakers’ access to the credit or seeking legislative action from Congress to completely eliminate it. During his previous presidency, Trump had pushed to abolish the EV tax credit, a measure which was later extended by President Joe Biden in 2022.
Trump emphasized that while he supports electric vehicles, he also values gasoline-powered cars and hybrids. “I’m not making any final decisions on it,” he noted. “I’m a big fan of electric cars, but I’m also a fan of gasoline-powered cars and hybrids, and I’m open to whatever new technologies emerge.”
In addition, Trump pledged to overturn Biden administration rules that incentivize automakers to increase the production of EVs and plug-in hybrids to comply with tougher emissions standards. He also mentioned his willingness to consider Tesla CEO Elon Musk for a cabinet or advisory position if Musk were interested, noting Musk’s recent endorsement of Trump’s candidacy.
On another front, Trump proposed imposing new tariffs to curb the export of vehicles manufactured in Mexico by American automakers, aiming to prioritize U.S. consumers.
Trump also expressed strong criticism of Alphabet’s Google following a recent court ruling that deemed the company an illegal monopoly. He described Google as operating in a manner akin to the “Wild West” and suggested that the company would face significant repercussions, though he did not specify what form those penalties might take.