WASHINGTON - President-elect Donald Trump is set to target federal regulations initiated by President Joe Biden that promote fuel-efficient automobiles and the transition to electric vehicles.
This initiative aligns with Trump's campaign promise to eliminate the so-called 'EV mandate,' although no formal mandate currently exists. Biden's regulations would require automakers to produce at least 35% electric vehicles by 2032 and phase out fossil fuel-powered vehicles.
The incoming administration intends to weaken fuel-efficiency standards and tailpipe emissions regulations established by the U.S. National Highway Traffic and Safety Administration and the Environmental Protection Agency. Trump is expected to direct these agencies to reassess the Biden regulations.
Reports indicate that Trump's transition team is also considering the elimination of the $7,500 consumer tax credit for electric vehicle purchases, a move that could hinder the U.S. electric vehicle market.
During Trump's first term, it took nearly three years to overturn similar regulations from the Obama administration. The transition team aims to address complaints from automakers regarding the Biden regulations.
This regulatory rollback may impact companies like Tesla, which has profited from selling credits to automakers unable to meet federal standards. Loosening these standards could diminish the value of such credits.
Tesla CEO Elon Musk, a prominent supporter of Trump, has been an influential adviser since the election.