The US government may withdraw its electric vehicle support policy and relax tailpipe emission restrictions

According to a draft document cited by Reuters, the Trump team proposed a radical change to the US electric vehicle and tailpipe emission policies, including the elimination of electric vehicle incentives and government mandates for federal electric vehicle fleets, and the revocation of the Biden administration's regulations on tailpipe emissions and fuel economy standards.

During the campaign, Trump repeatedly slammed Biden's "crazy" electric vehicle mandate, believing that the Biden administration was trying to support electric vehicle sales through incentives and mandatory requirements for federal agencies to use electric vehicles.

Under Biden's leadership, the US Environmental Protection Agency (EPA) has introduced new air pollution restrictions to encourage automakers to produce and seek to sell more electric vehicles.

The American Petroleum Institute (API) filed a lawsuit against the US EPA over vehicle emissions standards. Senior Vice President and General Counsel Ryan Meyers said, "The EPA's regulations exceed the authority of Congress and will remove most new gas vehicles and traditional hybrid vehicles from the US market in less than a decade."

At the same time, electric vehicle sales have not soared as expected, and merchants including the largest US automakers have slowed the introduction of new electric vehicle models or bet on more hybrid vehicles.

Ford Motor Co., for example, said earlier this year it would delay plans to launch some of its next-generation electric vehicles as it expands its hybrid vehicle offerings, the latest sign of slowing consumer adoption of electric vehicles.

The Trump administration is now proposing not only to eliminate a $7,500 tax credit for electric vehicles, but also to shift $7.5 billion in remaining Biden funding for electric vehicle charging stations to battery mineral processing and "defense supply chains and critical infrastructure," according to documents seen by Reuters.

Tariffs are also among the topics of the planned policy reversal. Trump's transition team recommended tariffs on all battery materials worldwide. The team believes this will increase domestic production in the United States. According to documents seen by Reuters, the United States will negotiate tariff exemptions separately with allies.