Trump vs. Biden: Clash of Electric Vehicle Policies
Former President Donald Trump didn’t hold back during his nomination speech at the Republican National Convention in Milwaukee. He took aim at President Joe Biden’s electric vehicle (EV) policies and vowed to take action against them on his first day in office. Trump promised to end what he called the “electric vehicle mandate,” claiming it would save the U.S. auto industry from complete obliteration and save customers thousands of dollars per car.
However, critics argue that the Biden administration doesn’t actually have a mandate on electric vehicles. Instead, they point to new air-pollution limits issued by the Environmental Protection Agency in March, which have been accused of illegally forcing automakers to sell EVs. The debate centers around the potential impact of these limits on the auto industry.
Interestingly, in the same speech, Trump also made a seemingly paradoxical statement, suggesting that China should build EVs in the United States. U.S. automakers fear that cheap Chinese vehicles could be an “extinction-level event” for their industry, so Trump’s invitation to the Chinese seems contradictory. Currently, China’s largest EV maker BYD Co. is looking to establish a major auto factory in Mexico, causing concern among American manufacturers.
Both Trump and Biden share concerns about made-in-China cars entering the U.S., as they aim to protect domestic manufacturers. However, they approach the issue from different angles. Trump takes a more transactional approach, welcoming Chinese companies to build plants in the U.S., while Biden broadly scrutinizes vehicles with links to China.
Biden’s administration has taken steps to exclude firms with at least 25% ownership by a Chinese government entity from benefiting from tax credits. They have also launched an investigation into cars with software made in China, citing potential data and safety risks for U.S. citizens.
Trump’s remarks on EVs were followed by criticism of what he called “trillions of dollars of wasteful spending” related to the “green new scam.” He pledged to redirect the funds to projects such as roads, bridges, and dams. However, it remains unclear how he would fulfill this promise, as the Biden administration’s Infrastructure Law is already addressing infrastructure projects.
It is no secret that Trump has expressed disdain for electric vehicles, claiming they don’t work and will benefit China and Mexico at the expense of American autoworkers. On the other hand, Biden has made the transition to battery-powered cars a key part of his climate and industrial policies. He aims to have 50% of all new vehicle sales be electric by 2030.
As the two leaders potentially head toward an election rematch in November, they both want to appear tough on Beijing. During the rally, Trump referred to Covid-19 as the “China virus,” emphasizing his previous trade negotiations with the Chinese government during his time in office. Their divergent approaches to EVs and China highlight the contrasting visions they hold for the future of America’s automotive industry.
