Trump Issues Surprise Emergency Order

A new Trump emergency order just took effect. It could reset the U.S. economy, impact 65M Americans, and trigger a major wealth shift tied to a $257T force Buffett called the greatest transfer of wealth. Billionaires are already positioned. If you want in, time is short.

What's next for EVs under President Trump?

ALEXA ST. JOHN and MATTHEW DALY
January 21, 2025

WASHINGTON (AP) -- President Donald Trump signed an executive order promising to eliminate what he incorrectly labels "the electric vehicle mandate" imposed under former President Joe Biden. His order on Monday is consistent with pledges Trump made on the campaign trail to end what he calls a "preposterous" focus on EV's by Biden and other Democrats. The order, along with other steps expected in a second Trump administration, could slow U.S. efforts to address climate change, much of which is caused by burning gasoline and diesel fuel that emit carbon dioxide and other planet-warming greenhouse gases.

Here is a look at Trump's actions and what happens next.

What does Trump's executive order say about EVs?

Trump's order said he would "eliminate the electric vehicle (EV) mandate" and promote true consumer choice, which is essential for economic growth and innovation, by removing regulatory barriers to motor vehicle access; by ensuring a level regulatory playing field for consumer choice in vehicles." While there is no Biden "mandate" to force the purchase of EVs, the Democratic president's policies were aimed at encouraging Americans to buy them and car companies to shift from gas-powered vehicles to electric cars.

Trump's order, entitled "Unleashing American Energy,'' also said his administration would terminate "where appropriate, state emissions waivers that function to limit sales of gasoline-powered automobiles; and by considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable."

Language in the order and others issued by Trump on Monday indicate he is likely to seek to repeal a $7,500 tax credit for new EV purchases approved by Congress as part of Biden's landmark 2022 climate law, as well as roll back Biden-era Environmental Protection Agency rules to tighten limits on greenhouse gas emissions and other pollution from passenger and commercial vehicles.

Trump has also promised to end a federal exemption that allows California to phase out the sale of gas-powered cars by 2035. The federal waiver is important not only to California but also to more than a dozen other states that follow its nation-leading standards on vehicle emissions.

Trump's order Monday was reminiscent of action taken during his first term in the White House, when he rolled back tough vehicle emissions standards set under Democratic then-President Barack Obama.

Did Trump address EV charging?

In the executive order, Trump also put an immediate pause to billions of dollars in funding allocated for EV charging stations appropriated through the climate law, known as the Inflation Reduction Act and the bipartisan infrastructure law approved in 2021.

Biden had set a goal of creating 500,000 such chargers by 2030. As of late last year, there were 214 operational chargers in 12 states that have been funded through the federal laws, with 24,800 projects underway across the country, according to the Federal Highway Administration. A total of more than 203,000 publicly available charging ports are operating across the U.S., with nearly 1,000 being turned on every week, according to the agency. This is more than double the number available in 2021.

What EV-related policies currently exist?

While in office, Biden set a goal for half of all new vehicles sold in the U.S. by 2030 to be electric and dedicated funding to EV charging infrastructure through the National Electric Vehicle Infrastructure Formula and the Charging and Fueling Infrastructure Discretionary Grant programs.

Under the former president, the EPA created tailpipe limits to curb planet-warming emissions from passenger vehicles. The final rules are the most ambitious standards of their kind in the nation. Still, automakers could meet the EPA's limits with sales of EVs as low as 30% in 2032, along with more fuel-efficient gasoline-powered vehicles.

Also under Biden, the U.S. National Highway Traffic Safety Administration set standards on fuel-efficiency requirements, which required new vehicles sold in the nation to average about 38 miles per gallon of gasoline in 2031, up from about 29 mpg in 2024.

Both sets of rules inherently incentivized automakers to electrify their lineups for American car buyers.

Where do EVs stand in the US?

Though the pace of EV sales growth in the U.S. slowed last year, EVs accounted for 8.1% of new vehicle sales, up from 7.9% the year before, according to Motorintelligence.com.

While the cost of EVs has slowly come down as the auto industry scales manufacturing of the vehicles and expensive battery prices improve, they still cost more upfront than traditional gasoline-powered cars.

Even before Monday's order, some automakers have pulled back ambitious plans to go electric. Ford nixed plans for electric three-row SUVs in lieu of making them gas-electric hybrids; General Motors delayed production at an EV battery cell plant.

What happens next?

Temporarily, sales of EVs could skyrocket as car-buyers rush to take advantage of existing tax credits encouraging electrified car purchases.

But the order also means the U.S. could have a more challenging time meeting emissions reductions goals in the long run. Light-duty cars and trucks are responsible for more than half of the U.S. greenhouse gases from transportation, and the sector itself is a major contributor to the nation's overall emissions.

Any action to roll back or revise regulations is likely to face legal challenges from environmental groups and others.

"These clean car rollbacks will burden Americans with a Trumpfecta of higher prices, more pollution and weaker competitiveness," said Dan Becker, director of the Center for Biological Diversity's Safe Climate Transport Campaign. "Trump's attacking the biggest single step ever taken to fight climate pollution."

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St. John reported from Detroit.

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Read more of AP's climate coverage at http://www.apnews.com/climate-and-environment

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The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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