Former President and current Republican presidential candidate Donald Trump revealed on Monday that if re-elected, he would contemplate terminating the $7,500 tax credit for electric vehicle (EV) purchases. Trump also expressed openness to appointing Tesla CEO Elon Musk to a cabinet or advisory position.
In an interview with Reuters following a campaign event in York, Pennsylvania, Trump stated, “Tax credits and tax incentives are not generally a very good thing,” when questioned about the EV tax credit. Regarding the possibility of bringing Musk into his administration, Trump responded affirmatively, calling Musk a “very smart guy” and a “brilliant” individual.
Potential Reversal of EV Policies
Trump indicated that if he wins the presidency, he might seek to reverse Treasury Department rules that have made it easier for automakers to benefit from the $7,500 EV credit. He could also push Congress to repeal the credit entirely. During his presidency, Trump attempted to revoke the EV tax credit, which was later expanded under President Joe Biden in 2022.
While Trump did not make a definitive decision on the matter, he emphasized his support for a variety of vehicles, including electric cars, gasoline-powered cars, and hybrids. He criticized the Biden administration’s regulations that encourage automakers to produce more EVs and plug-in hybrids to comply with stricter emissions standards, arguing that the market for EVs is likely to remain limited due to cost and battery range issues.
Trade Policy and Auto Manufacturing
Trump also reiterated his intent to discourage the export of vehicles produced in Mexico by American automakers through the imposition of new tariffs. He expressed concerns that Mexico is “stealing our car industry” and suggested that tariffs would prompt manufacturers to produce vehicles within the United States.
However, Trump showed a willingness to allow Chinese and other foreign automakers to build plants in the US, provided they hire American workers. “We will make our own cars. I want to make our own cars,” he stated.
Criticism of Google and Stance on TikTok
On a separate note, Trump criticized Alphabet’s Google, labeling the tech giant as being “almost like the Wild West.” Although he stopped short of endorsing the idea of breaking up the company following a recent court ruling that declared Google an illegal monopoly, he hinted that the company would face significant consequences.
When asked about his stance on TikTok, Trump reiterated his opposition to banning the popular app, despite a law requiring its Chinese parent company, ByteDance, to divest its US assets by January 2025. Trump suggested that ByteDance might consider selling the platform, acknowledging the complexities involved in banning TikTok, including concerns about free speech. However, he noted that TikTok had “treated me very well.”