Republican presidential candidate Donald Trump announced on Monday that, if elected, he would contemplate ending the $7,500 tax credit for electric vehicle (EV) purchases. During an interview with Reuters after a campaign event in York, Pennsylvania, Trump expressed his skepticism towards tax credits and incentives, stating, “Tax credits and tax incentives are not generally a very good thing.”
Potential Cabinet Role for Elon Musk
In the same interview, Trump mentioned that he would be open to naming Tesla CEO Elon Musk to a cabinet or advisory role, acknowledging Musk’s intelligence and business acumen. “He’s a very smart guy. I certainly would, if he would do it, I certainly would. He’s a brilliant guy,” Trump said. This follows Musk’s public endorsement of Trump in the U.S. presidential race last month.
Impact on EV Tax Credit and Emission Standards- Trump
Trump, who previously sought to repeal the EV tax credit during his presidency, suggested that he might reverse current Treasury Department rules that have made it easier for automakers to utilize the $7,500 credit. He also indicated that he could ask Congress to repeal it entirely. Although he expressed support for electric cars, Trump emphasized his broader interest in gasoline-powered vehicles, hybrids, and other alternatives.
In addition, Trump criticized the Biden administration’s rules that encourage automakers to produce more EVs and plug-in hybrids to comply with stricter emissions standards. He suggested that the market for EVs might remain “much smaller” due to cost and battery range limitations.
Trade and Manufacturing Policies
Trump reiterated his stance on trade and manufacturing, stating that he would impose new tariffs to discourage the export of vehicles produced in Mexico by Detroit automakers and others for the U.S. market. He argued that such tariffs would prompt automakers to manufacture cars domestically. “If you put tariffs on those cars, they’re going to make it here. It’s very simple,” Trump said.
However, he also expressed openness to foreign automakers, including those from China, building plants in the U.S. “We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers,” Trump stated, emphasizing his desire to bolster domestic car manufacturing.
Views on Google and TikTok
Trump also voiced strong criticism of Alphabet’s Google, though he refrained from commenting on whether the tech giant should be broken up following a recent court ruling that deemed Google an illegal monopoly. “They’re almost like the Wild West,” Trump remarked, hinting that Google could face significant penalties.
On the topic of TikTok, Trump indicated that he would prevent the app from being banned, despite a law that mandates Chinese owner ByteDance to divest TikTok’s U.S. assets by January 2025. He acknowledged the complexities involved in banning the platform, citing concerns about free speech, but also suggested that ByteDance might consider selling TikTok. “It’s very hard to ban something like that,” Trump said, adding, “TikTok has treated me very well.”
