In his inauguration address, US President Donald Trump has set the scene for new policies on energy and industry that would – at face value – suggest some rolling back of the previous Biden administration’s policies designed to stimulate sales of electric vehicles and encourage investment in green energy as part of broader sustainability goals.
Details were scant, but Trump ordered his new administration to ‘eliminate the electric vehicle mandate’ – a term used by Trump to describe a raft of Biden administration initiatives aimed at encouraging EVs and investment in EVs in the US automotive industry.
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An energy focused executive order called for regulators to consider the elimination of ‘unfair subsidies and other ill-conceived government-imposed market distortions that favour EVs over other technologies and effectively mandate their purchase.’
Media reports note that it would take an act of Congress to repeal the $7,500 consumer rebate on EVs. However, there are other levers that the Trump administration can pull such as on fuel efficiency rules and related standards on tailpipe emissions imposed by the Environmental Protection Agency (EPA).
Trump has also vowed to take the US out of the international Paris climate agreement and declared a ‘national energy emergency’ that will reverse US climate regulations and boost oil and gas production.
President Trump also vowed the US would embark on a new age of oil and gas exploration.
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By GlobalData“We will bring prices down, fill our strategic reserves up again, right to the top, and export American energy all over the world,” he said. In his inaugural address he proclaimed that, “we will drill, baby, drill.” That raises the possibility of more drilling permits and expanding offshore drilling operations.
Besides the energy-related statements of intent, there was little detail on future import tariffs, a policy area that will be closely watched in Europe and Asia. However, Trump did say there will be an overhaul of the US trade system aimed at collecting tariff revenues. His administration will establish the External Revenue Service. This new agency will collect tariffs, duties, and other revenue from foreign sources.
“We will build automobiles in America again at a rate that no-one could have dreamt possible just a few years ago,” Trump said.
