Trump Hints at Scaling Back US EV Targets

In a striking address at the Republican National Convention in Milwaukee, US presidential candidate Donald Trump vowed to roll back the country's electric vehicle (EV) targets on his first day in office. "I will end the electric vehicle mandate on day one," Trump declared, "thereby saving the US auto industry from complete obliteration, which is happening right now."

While the US does not have an official EV mandate, it appears Trump was referencing the sales targets set by the US Environmental Protection Agency (EPA). Last April, the EPA proposed measures to combat pollution from diesel and petrol-powered vehicles, aiming for a 60% market share for light-duty battery EV (BEV) sales by 2030, rising to 67% by 2032.

However, in March, the EPA revised its market share forecast for BEV sales to 56% from 67% by 2032, with plug-in hybrid EVs filling the projected sales gap. Trump also voiced concerns about the growing presence of Chinese EV manufacturers. He pointed out that the US EPA's targets have faced resistance from individual states, which can impose their own conflicting targets.

"Right now, as we speak, large factories are being built across the border in Mexico … they are being built by China to make cars and sell them in our country," Trump added, highlighting the threat posed by Chinese EV makers establishing factories abroad. "We're going to put a 100% tariff on every single [Chinese] car that comes across the line, and you're not going to be able to sell them," Trump stated on March 16.

The Biden administration recently announced tariff increases up to 102.5% on Chinese-made EVs, up from the 27.5% duties set by the Trump administration.

China's largest EV maker, BYD, has announced investments in EV production in Hungary, Thailand, Uzbekistan, Morocco, India, Turkey, Vietnam, and Cambodia, with a combined production capacity of over 1 million EVs per year.