WASHINGTON

According to industry associations and executives, President-elect Donald Trump has signalled that he plans to begin rescinding Environmental Protection Agency and Transportation Department vehicle rules on his first day in office. He is also considering pairing back or eliminating EV tax breaks and other incentives, a move that could significantly impact the future of billions of dollars in EV battery and manufacturing investments.

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The Zero Emission Transportation Association, which includes Tesla, Rivian, Lucid, and battery maker LG, has acknowledged the importance of the next four years in ensuring that these EV technologies are developed and deployed by American workers in American factories. However, the industry is bracing for a shift away from the pro-EV policies of the previous administration.

Trump has repeatedly warned of imposing tariffs of 200% or more on vehicles imported from Mexico, and he may also target Asian and European vehicle imports. The president-elect's desire to prevent Chinese auto imports, while being open to Chinese automakers building vehicles in the United States, is also creating uncertainty for the industry.

The potential for higher tariffs on imports is already causing concern among industry experts, who warn that it could result in higher costs for consumers and disrupt the complex global supply chains that feed into the automotive manufacturing system. Mark Williams, president of site selection firm Strategic Development Group, noted that if China is cut off, the U.S. may need Mexico more than ever to provide the necessary parts and components.

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South Korea's trade minister has suggested that companies from his country may invest more in the United States if Trump imposes higher tariffs, while automakers like Honda and Toyota are considering how to adapt their production and supply chains to the new policy landscape.

As the industry braces for these sweeping changes, the future of the EV sector and the broader automotive landscape in the United States remains uncertain. Automakers will need to navigate a complex web of new trade policies, regulatory shifts, and shifting consumer preferences in the coming years under the Trump presidency.