Auto industry: Trump charges electric vehicles on his first day

Barely reinstalled in the White House, American President Donald Trump targeted electric vehicles, the development of which was at the heart of the fight against climate change led by his predecessor.

The presidential decree signed Monday, in the wake of the inauguration, aims to restore the image of combustion engines and to eliminate federal subsidies for the installation of charging stations for electric vehicles. Other measures could follow, such as eliminating a federal tax credit for purchasing an electric vehicle or canceling an exemption allowing California to have stricter criteria than the rest of the country when it comes to automobiles.

During his inauguration speech, Donald Trump said he intended to “put an end” to the “Green New Deal”, mocking the aid promoted by Joe Biden to stimulate sales of electric vehicles. During his campaign, he strongly criticized this type of motorization, but many experts were skeptical, if only because a significant part of federal funding was granted in Republican constituencies, where thousands of jobs must be created.

Shares of electric vehicle manufacturers like Rivian or manufacturers of charging equipment like EVgo have fallen on the stock market. Just like those of Tesla, owned by Elon Musk who is nevertheless a close ally of the president.

For Kathy Harris, director of the environmental organization NRDC in charge of clean vehicles, Trump seeks to satisfy the “bigwigs of the oil industry”. However, according to her, electric vehicles are better for the environment and can allow consumers to save on fuel.

This presidential decree, like many others signed since Monday, could lead to legal action. “This is not the end of this story,” Harris warned. “If the government tries to dodge or ignore the law, it will end up in court.”

Sales of electric vehicles increased by 7.3% year-on-year to 1.3 million in 2024, according to specialist Kelley Blue Book, insisting that they have progressed significantly in all price ranges.

The Biden administration’s recommendations in terms of fuel consumption forced manufacturers to market vehicles with very low greenhouse gas emissions. At the same time, its major IRA (Inflation Reduction Act) and other pieces of legislation have introduced financial benefits, such as tax credits, to boost sales of electric vehicles.

The presidential decree signed Monday requires those responsible for implementing these laws to carry out a review, within 90 days, to ensure that the aid does not unbalancely favor electric vehicles “by making other types of vehicles more expensive “.

Nearly half of the $5 billion allocated to install new charging stations has already been allocated, according to an NRDC document.

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