Trump Revokes Biden’s 50% EV Target

Immediately following his inauguration on Monday, January 20, President Donald Trump signed an order to nullify President Joe Biden's 2021 executive order. President Biden's order had established a target of 50% of all new vehicle sales in the United States to be electric by 2030. It is important to note that President Biden's target was not legally binding.

The Biden administration's EV agenda focused on stringent regulations, including emissions standards requiring 30-56% of new car sales to be electric by 2032, and sales goals aiming for 50% of new car sales to be electric by 2030.


Biden's initiatives also included incentives, such as tax breaks, infrastructural investments, and manufacturing support, to compel automakers to make investments in EV manufacturing and technology.

However, critics claimed that these regulations put manufacturers—especially smaller, less resource-rich companies—under excessive pressure.


Trump criticised federal assistance for EV sales in his inauguration speech and said he would issue a slew of executive orders on his first day in office. In his speech, the president declared, "The United States will not sabotage our own industries while China pollutes with impunity."

Trump's executive order not only revoked the Biden EV objective but also prevented the $5 billion fund for auto charging stations from being used to pay for EV charging. A waiver available to states that enacted zero-emission vehicle regulations by 2035 was also terminated by Trump. Additionally, he stated that his administration will think about ending EV tax benefits.

Trump's EV policy directives are a component of a larger strategy to eliminate environmental protections put in place during the Biden administration. It’s also part of his strategy to support US companies that manufacture gas-powered vehicles. It's still up for debate whether regulations or incentives work better to encourage EV adoption. International models demonstrate different strategies: Sweden implements stronger regulatory measures to promote compliance, whereas the UK primarily relies on incentives, such as smart energy prices and charging perks, to promote EV adoption.

Similar measures have been taken by the Malaysian government to promote the use of electric vehicles. Among the most important measures is the exemption of fully built-up (CBU) EVs from import taxes and excise taxes through December 31, 2025.

Despite the uncertainties caused by Trump's policy reversals, consumer demand, state-level action, and worldwide trends seem to be supporting the EV market's growth. But without federal backing, adoption would lag and long-term climate goals could be in jeopardy.