Trump team plans to overturn Biden policies, and the American electric vehicle industry is facing major changes.

According to reports, a document shows that the transition team of US President-elect Donald Trump has proposed a comprehensive reform, cutting support for electric vehicles and charging stations, and strengthening blockades on car parts and battery materials from China. The document shows that the Trump transition team also proposed imposing tariffs on all battery materials globally to boost US production, and then negotiate separately with allies for exemptions. These suggestions come at a time when the transformation of electric vehicles in the US has stalled. During his campaign, Trump pledged to loosen regulations on fossil fuel cars and repeal so-called electric vehicle mandates. Overall, these suggestions are in stark contrast to the policies of the Biden administration, which seeks a balance between independence in the battery supply chain and a rapid transition to electric vehicles. The Trump transition team plans to redirect funds currently used for building charging stations and reducing electric vehicle costs to defense priorities. Reversing Biden's electric vehicle policy The Trump transition team also calls for the cancellation of the $7,500 tax credit provided by the Biden administration for consumers purchasing electric vehicles. These policy changes could impact the sales and production of electric vehicles in the US, especially as traditional automakers like General Motors Company (GM.US) and Hyundai introduce more electric vehicle products to the US market. Reducing the tax credit for electric vehicles could also affect the sales of Tesla, Inc. owned by Elon Musk. Tesla, Inc. is the largest electric vehicle seller in the US. However, Musk, who spent over $250 million supporting Trump's election, stated that losing subsidies would harm competitors more than Tesla, Inc. The transition team calls for the withdrawal of remaining funds from Biden's $7.5 billion charging station construction program, and redirecting the funds to battery mineral processing and "defense supply chain and critical infrastructure." The document points out that while batteries, minerals, and other electric vehicle components are "vital to defense production", electric vehicles "and charging stations are not". A 2021 government report stated that the US military faces "increasing demands for power" in areas such as weapons and communication equipment. The report highlighted the importance of a "reliable source of critical minerals and materials" for "US national security". Trump transition team spokesperson Karoline Leavitt said that voters have given Trump the power to fulfill his campaign promises, including stopping the government's attacks on gasoline-powered cars. Leavitt said in a statement, "President Trump will support the automotive industry to provide space for both gasoline-powered cars and electric vehicles." Easing vehicle emissions standards Global automakers are increasingly turning to electric vehicles, in part to comply with stricter emissions standards aimed at combating climate change. However, the Trump transition team proposed lowering the emissions and fuel economy standards advocated by the Biden administration, which would allow automakers to produce more gasoline-powered vehicles. The transition team suggested restoring these regulations to 2019 levels, which would result in average emissions per mile per vehicle being approximately 25% higher than the current 2025 limit, and average fuel economy being approximately 15% lower. The Trump transition team also proposed stopping California from implementing stricter vehicle emissions standards, as more than ten states have adopted the standard. Trump banned California from imposing more stringent requirements in his first term, a policy change that Biden reversed. California has already applied for another waiver from the EPA to incorporate stricter requirements starting in 2026, ultimately requiring all vehicles to be electric, plug-in hybrid, or hydrogen-powered by 2035. The EPA under the Biden administration has not yet approved California's application. Many of the suggestions from the Trump transition team seem aimed at encouraging domestic battery production in the US, primarily for defense-related interests. Some proposals also seem aimed at protecting US automakers, including those producing electric vehicles.