On January 20, President Donald Trump signed an executive order overturning a 2021 directive from former President Joe Biden, which had set a target for electric vehicles (EVs) to account for 50% of all new vehicle sales in the US by 2030.
Although Biden’s goal was not legally binding, it had received backing from both domestic and international automakers.
President Trump’s order goes beyond merely rescinding the EV sales target. It directs federal agencies to re-evaluate current emissions regulations, which require automakers to achieve 30% to 56% EV sales by 2032 to comply with federal standards. Additionally, the executive order freezes the allocation of unspent federal funds intended for expanding EV-charging infrastructure, effectively stalling the development of a nationwide network of charging stations.
Another significant aspect of the order is the termination of state emissions waivers that restrict the sale of gasoline-powered vehicles. This includes revoking California's waiver, which allowed the state to enforce a ban on the sale of new gasoline-only vehicles by 2035. By eliminating such waivers, the Trump administration aims to create uniform emissions regulations across all states.
These moves are part of the administration’s broader effort to promote consumer choice and reduce what it views as regulatory favouritism toward electric vehicles. The administration is also evaluating the possibility of ending federal EV subsidies, such as the $7,500 (R139 000) tax credit, arguing that these incentives distort the market.
The policy changes carry major implications for the automotive industry, which has invested significantly in EV development in recent years. While global demand for EVs continues to grow, the rollback of supportive policies in the US could reshape domestic market dynamics and slow the pace of EV adoption.
