Trump’s election win spells bad news for the auto industry
Yesterday, Donald Trump won a second presidential term from American voters. His first term was marked, among other things, by attempts to water down environmental laws and regulations aimed at the auto industry. And as a candidate in 2024, Trump has promised plenty of disruption to the sector through both trade policy and an abrogation of the government's commitment to fight climate change. Here are some of the more significant changes we think are coming.
Electric vehicle adoptionThe Inflation Reduction Act of 2022 was one of President Joe Biden's signature policy achievements, part of a $450 billion climate package. One of its many sections revised the way we incentivize consumers to buy electric vehicles, with an update to the clean vehicle tax credit that requires final assembly in North America, as well as ever-increasing amounts of US-sourced battery components and minerals to be eligible.
But such policies are not loved by the Republican Party. During his first term, Trump repeatedly criticized EVs, saying that "all-electric is not going to work," and he vociferously attacked EVs during his campaign, telling supporters at his party's national convention in July that "I will end the electric vehicle mandate on day one," referring to a current White House goal to reach 50 percent EV adoption by 2030, and calling the most significant climate legislation ever "the new green scam."