Republican presidential candidate Donald Trump indicated on Monday that he might consider ending the $7,500 tax credit for electric vehicle (EV) purchases if elected. Speaking to Reuters after a campaign event in York, Pennsylvania, Trump criticized tax credits and incentives, stating, “Tax credits and tax incentives are not generally a very good thing.”
Trump also expressed openness to appointing Tesla CEO Elon Musk to a cabinet or advisory role, describing Musk as “a very smart guy” and “brilliant.” Musk publicly endorsed Trump in the U.S. presidential race last month. Tesla has yet to respond to requests for comment.
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Should Trump win the presidency, he could seek to reverse Treasury Department rules that facilitate the use of the $7,500 EV credit or push Congress to repeal it entirely. Trump had previously attempted to eliminate the credit during his presidency, which was later expanded by President Joe Biden in 2022.
Regarding EVs, Trump stated, “I’m a big fan of electric cars, but I’m a fan of gasoline-propelled cars, and also hybrids and whatever else happens to come along.” He also mentioned plans to rescind Biden administration rules that encourage automakers to produce more EVs and plug-in hybrids to meet stricter emissions standards. Trump criticized the EV market, citing cost and battery range issues.
In addition to his stance on EVs, Trump outlined plans to impose new tariffs to discourage the export of vehicles from Mexico to the U.S. and prevent Chinese automakers from establishing new plants in Mexico for U.S. market vehicles. He emphasized his preference for building vehicles domestically, stating, “If China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers.”
On a separate note, Trump criticized Alphabet’s Google, calling it “almost like the Wild West” after a judge’s recent ruling deemed Google an illegal monopoly. However, Trump did not specify any penalties he would impose.
Trump also addressed the future of TikTok, saying he would not support banning the app despite a law setting a deadline for its divestment by its Chinese owner, ByteDance. He acknowledged the challenges of banning such a platform due to free speech concerns, adding, “TikTok has treated me very well.”
