CALIFORNIA

Donald Trump's transition team is recommending sweeping changes that could fundamentally reshape the United States' automotive and energy landscape. A confidential document reveals a comprehensive strategy to curtail government support for electric vehicles, charging infrastructure, and dramatically restructure automotive emissions regulations. The proposals represent a stark contrast to the Biden administration's efforts to accelerate electric vehicle adoption and reduce carbon emissions.

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The recommended policy changes encompass multiple critical areas, including eliminating the existing USD 7,500 tax credit for consumer EV purchases, redirecting funds earmarked for charging station development towards national defence priorities and imposing global tariffs on battery materials.

Central to the proposed strategy is a significant reorientation of automotive policy towards national security concerns. The transition team argues that while battery minerals and components are crucial to defence production, electric vehicles and charging stations themselves are not strategically essential.

The Defence Department has previously highlighted vulnerabilities in the United States' critical minerals supply chain, particularly regarding China's dominant position in mining and refining essential materials like graphite, lithium, and rare-earth metals used in battery and motor production.

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Key proposed measures include instituting tariffs on EV supply chain imports, including batteries and critical minerals, using Section 232 national security provisions. The team also recommends waiving environmental reviews to expedite federally funded EV infrastructure projects and expanding export restrictions on battery technology.

Emissions standards would be rolled back to 2019 levels, effectively permitting approximately 25% more emissions per vehicle mile and reducing average fuel economy standards by around 15%. The proposals additionally seek to block California's ability to set its own stringent vehicle emissions standards, a policy previously implemented during Trump's first presidential term.

The recommendations could significantly impact the automotive industry, which has been progressively transitioning towards electrification. Major manufacturers like General Motors and Hyundai have recently expanded their electric vehicle offerings, potentially facing substantial challenges under these proposed policies.

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The proposed policy shifts come amid a complex global automotive landscape, where manufacturers are increasingly aligning with stricter environmental regulations and consumer demands for more sustainable transportation options.

Trump's transition team spokesperson, Karoline Leavitt, stated that voters provided a mandate to deliver campaign promises, including supporting the traditional automotive sector while allowing space for both gas-powered and electric vehicles.

The proposed changes represent a potential fundamental restructuring of the United States' approach to electric vehicles, emphasising national security and traditional automotive manufacturing over environmental considerations and emerging green technologies.