President Donald Trump was sworn into office on Jan. 20 and is moving swiftly to reverse key environmental policies enacted under his predecessor. A White House official confirmed that Trump plans to sign an executive order eliminating federal incentives for electric vehicles (EVs) and halting emissions goals set by the Environmental Protection Agency (EPA).
Although there is no official "EV mandate," Trump's order is expected to target the federal $7,500 EV tax credit established under former President Joe Biden, as well as regulatory measures requiring automakers to shift toward zero-emission vehicles. Last year, Biden finalized emissions rules mandating that two-thirds of all new passenger vehicles sold by 2032 must be electric or hybrid models, though it remains uncertain whether Trump has the authority to fully repeal those regulations.
Trump also announced plans to declare a "national energy emergency," signaling a broader push to expand fossil fuel production and roll back environmental initiatives.
"The inflation crisis was caused by massive overspending and escalating energy prices, and that is why today I will also declare a national energy emergency," Trump said in his inaugural address. "We will drill, baby, drill."
As part of this shift, Trump pledged to increase oil drilling in Alaska, withdraw the U.S. from the Paris climate agreement, and put an end to efforts associated with the Green New Deal.
The move is likely to face legal challenges, particularly in relation to the EPA's authority to regulate emissions. If Trump's order succeeds in rolling back emissions targets, the agency may need to draft and implement new regulations -- a process that could take years.
While Trump is not immediately enacting tariffs on imported EV battery materials from China, Canada and Mexico, his administration has signaled an intent to reevaluate trade policies. A memorandum issued Jan. 20 directs officials to assess the country’s trade deficits, potentially leading to new tariff proposals in the coming months.
Additionally, Trump's first executive actions include a declaration of a national emergency at the U.S.-Mexico border and halting several immigration initiatives. Meanwhile, Tesla CEO Elon Musk has been officially appointed to lead the newly formed Department of Government Efficiency (DOGE), though the agency's creation could face legal scrutiny.
As the new administration takes shape, the automotive industry and environmental advocates are bracing for significant regulatory changes that could reshape the future of transportation and energy policy in the U.S.
