Trump ends "EV mandate" first day in office, could impose tariffs by Feb. 1

President Donald Trump targeted federal electric vehicle policies and signaled a sharp shift on trade during his first day in office.

Driving the news: During his inauguration speech on Monday, Trump confirmed his plans to undo what he calls the EV “mandate,” a set of policies passed by the Biden Administration in 2021 with the goal of boosting EV sales share to 50% by 2030.

• While they were not legally binding and did not require consumers to purchase EVs, Trump officially canceled the policies as he signed a slew of executive orders following his speech.

• The President also froze funds allocated for expanding EV infrastructure. While billions had been directed toward the project, only a handful of charging stations have been constructed with the funds.

Zooming in: In a post-inauguration chat with reporters while signing executive orders, Trump indicated he would impose heavy tariffs on at least two U.S. trade partners in the coming weeks.

• “We’re thinking in terms of 25% (tariffs) on Mexico and Canada because they’re allowing a vast number of people” to cross the border, he stated, adding that Canada was “a very bad abuser.” According to the President, these could be implemented as early as Feb. 1.

• Trump has previously floated the idea of passing a global tariff of 10% but stated Monday that the U.S. was “not ready for that just yet.”

• In previous statements, he has also discussed imposing tariffs on China but has now ordered federal agencies to study the potential impacts before making a decision.

Looking ahead: Trump is also targeting other areas that could impact the auto industry, although he has yet to take decisive action in these categories.

• This includes tailpipe emission standards passed by the Environmental Protection Agency last March. These policies would have set strict emissions allowances for vehicle fleets manufactured after 2027.

• The President has also directed the government to review its EV subsidies, including consumer tax credits. However, while Trump campaigned against buyer rebates and has the authority to revise the law, any motion to end these incentives flat out would have to go through Congress.

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