In the midst of Donald Trump’s executive orders dump on Tuesday were some that could undermine the American auto industry’s efforts to remain a force in the global industry, along with hundreds of billions of dollars of industry and taxpayers’ investment.

Under the heading of “Unleashing American Energy,” Trump issued orders that target electric vehicles and the Biden administration’s policies that have fuelled a boom in investment in EVs and their batteries in the US.

Donald Trump’s antipathy towards Joe Biden’s EV and climate-related measures could spell trouble for the US car industry.Credit: Bloomberg

The order said that Trump’s administration would “eliminate the (EV) mandate” and “promote true consumer choice, which is essential for economic growth and innovation, by removing barriers to motor vehicle access by ensuring a level regulatory playing field for consumer choice in vehicles”.

The administration would end, “where appropriate, state emissions waivers that function to limit sales of petrol-powered automobiles; and by considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favour EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable”.

Trump revoked a 2021 Biden order that set a non-binding aspirational target for EVs to comprise half of new vehicle sales by 2030 and also said he would end a federal exemption for California that would allow it to phase out the sale of petrol-driven vehicles by 2035. The size of California’s auto market means its ambition would have national implications for the take-up of EVs and the production plans of the major US auto companies.

Leaving aside the clunky language of the orders (and the fact that there is no “mandate,” but rather incentives to encourage purchases of EVs to help lower America’s carbon emissions), they........

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