Trump win to shake-up industry

The uptake of electric vehicles (EVs) in the United States looks set to slow after former president Donald Trump secured his return to the White House next year.

The Republican leader, pictured, has attacked EVs throughout his election campaign and promised to overturn targets set by current US President Joe Biden to encourage a switch to cleaner cars.

Trump’s election win will also likely result in extra tariffs on cars and parts made overseas as he seeks to protect the domestic supply chain, reports Automotive News.

Other trade actions may include expanding Biden’s Chinese EV tariffs, restricting imports of Chinese connected-vehicle technology, and introducing new tariffs on battery components and silicon providers. 

While such actions aim to enhance America’s automotive industry, commentators have warned many of the changes risk increasing costs for US vehicle manufacturers. Those extra expenses would likely be passed onto consumers, which could temper demand for new vehicles.

The new Trump administration may also choose to delay light-vehicle emissions regulations, which are due to kick in after the 2028 model year, and stop California from setting its own standards, reports Automotive News.

The president-elect has also promised to create a government efficiency committee headed by Elon Musk, founder and chief executive officer of Tesla, that will be tasked with saving billions of dollars from the federal budget.

Musk has previously said he will use his influence with the new administration to push for federal standards for autonomous vehicles, instead of sticking with the current state-by-state approach.