How Trump’s Policies Are Disrupting the EV Industry
- evautos2
- Feb 26
- 3 min read

The electric vehicle (EV) industry is facing an uncertain future under President Donald Trump’s second administration. Despite claiming to support EVs during his campaign, Trump’s actions so far suggest otherwise. From cutting funding for EV infrastructure to rolling back emissions regulations and imposing tariffs, his administration is shaking up the sector in a major way. Here’s a look at the key policy changes and their potential impact.
EV Charging Infrastructure Funding Halted
One of the biggest blows to the EV industry came when the Federal Highway Administration (FHWA) paused new funding for EV charging stations under the $5 billion National Electric Vehicle Infrastructure (NEVI) program. This initiative, originally launched under the Biden administration, aimed to deploy 500,000 public charging stations nationwide. While states can continue with already contracted projects, billions of dollars are now in limbo.
Additionally, the General Services Administration (GSA) plans to shut down EV charging stations at federal buildings, calling them “non-mission-critical.” This move further stifles the expansion of charging networks, making EV adoption more challenging.
Rollback of Fuel Economy and Emission Standards
Trump’s administration is also taking aim at fuel economy and emissions regulations. Transportation Secretary Sean Duffy has ordered a review of Corporate Average Fuel Economy (CAFE) standards, which push automakers to sell more efficient vehicles. The Environmental Protection Agency (EPA) is expected to follow suit by revising tailpipe emission regulations that would have incentivized EV production.
In addition, the administration is challenging California’s authority to set its own stricter emissions rules. This could impact the 12 states and Washington, D.C. that follow California’s lead, potentially slowing the push toward cleaner vehicles nationwide.
Potential Tariffs on Imported Vehicles
Trump has also hinted at imposing 25% tariffs on imported cars, including those built in Canada and Mexico. This could significantly impact the EV market, as many popular electric models—like the Chevrolet Equinox EV, Honda Prologue, and Ford Mustang Mach-E—are assembled in Mexico. Industry experts warn that these tariffs could drive up vehicle prices, making EVs even less accessible to American consumers.
Uncertainty Surrounding EV Tax Credits
Currently, consumers can still claim the $7,500 federal EV tax credit, but its future is uncertain. The Trump administration has floated the idea of eliminating this incentive to fund tax cuts. While Congress holds the power to make these changes, there’s already legislation in motion—the ELITE (Eliminating Lavish Incentives to Electric) Vehicles Act—that seeks to eliminate many EV-related subsidies.
Losing these incentives could significantly slow EV adoption, as affordability remains a key factor for consumers considering the switch to electric cars.
What’s Next for the EV Industry?
Legal challenges are expected to arise in response to some of these policy changes, particularly regarding the NEVI funding pause and California’s emissions waivers. Automakers, states, and advocacy groups may fight back to preserve incentives and infrastructure investments. Meanwhile, the threat of tariffs has already prompted some manufacturers to rethink their supply chains.
Despite these headwinds, EV sales remained strong in December and January, suggesting that consumers and automakers are pushing ahead despite regulatory uncertainty. However, the full impact of these policy shifts won’t be clear until later this year.
Final Thoughts
The EV industry faces significant challenges under Trump’s new policies, but the fight for cleaner transportation is far from over. The legal battles, industry responses, and evolving market dynamics will determine whether these changes result in a temporary setback or a long-term roadblock for electric mobility in the U.S.
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