According to reports obtained by the Zhito Finance APP, a document shows that the president-elect of the USA, Donald Trump’s transition team proposed comprehensive reforms, cutting support for Electric Vehicles and charging stations, and strengthening blocking measures against Autos, Auto Parts, and Battery materials from China.

The document shows that the Trump transition team also suggested levying tariffs on all Battery materials globally to boost production in the USA, and then negotiating for individual exemptions with allies.

These suggestions were made at a time when the transition of Electric Vehicles in the USA was stagnating. During the campaign, Trump vowed to loosen regulations on fossil fuel Autos and rescind what he termed the Electric Vehicle mandate.

Overall, these suggestions are starkly different from the Biden administration's policies, which seek to balance independence in the Battery supply chain with a rapid transition to Electric Vehicles. The Trump transition team plans to reallocate funds currently used for building charging stations and lowering Electric Vehicle costs to defense priorities.

Overturn Biden's Electric Vehicle policy.

The Trump transition team also called for the cancellation of the $7,500 tax credit for consumers purchasing Electric Vehicles provided by the Biden administration. These policy changes could impact the sales and production of Electric Vehicles in the USA, especially as many traditional Auto Manufacturers like General Motors (GM.US) and Hyundai recently launched more Electric Vehicle products in the USA market.

Reducing the electric vehicle tax credit may also impact sales of Tesla (TSLA.US), led by Elon Musk. Tesla is the largest electric vehicle seller in the USA. However, Musk, who spent over 0.25 billion dollars to help Trump get elected, stated that losing subsidies would harm competitors more than Tesla.

The transition team is calling for the remaining funds in Biden's 7.5 billion dollar charging station construction plan to be reclaimed and redirected towards Battery mineral processing and 'defense supply chain and critical infrastructure.'

The document notes that while Batteries, minerals, and other Auto Parts are 'critical to defense production,' electric vehicles 'and charging stations are not so.'

A government report from 2021 stated that the military in the USA is facing 'escalating Electrical Utilities demand' for technologies such as Weapons and Communications Equipment. The report emphasized that 'secure sources of critical minerals and materials' are 'vital to National Security' in the USA.

Trump transition team spokesperson Karoline Leavitt stated that voters have empowered Trump to fulfill campaign promises, including stopping the government's attack on RBOB Gasoline-powered Autos.

Leavitt said in a statement: 'President Trump will support the Auto Industry after taking office, providing space for both RBOB Gasoline-powered Autos and electric vehicles to develop.'

Relaxing auto emissions standards.

Global Auto Manufacturers are turning to electric vehicles, partly to comply with government-imposed stricter limits on climate-damaging emissions.

However, Trump's transition team suggested lowering the emissions and fuel economy standards advocated by the Biden administration, which would allow Auto Manufacturers to produce more gasoline-powered Autos. The transition team recommended restoring these regulations to 2019 levels, which would mean that each vehicle's emissions per mile would be approximately 25% higher than the current 2025 limit, with average fuel economy decreasing by about 15%.

The Trump transition team also suggested blocking California from setting stricter automotive emissions standards, which have already been adopted by more than a dozen states. Trump prohibited California from setting stricter requirements during his first term, a policy that Biden reversed.

California has applied to the USA Environmental Protection Agency for another waiver to incorporate stricter requirements starting in 2026, ultimately requiring that all vehicles must be electric, plug-in hybrid, or hydrogen-powered by 2035. The Biden administration's Environmental Protection Agency has yet to approve California's application.

Many of the suggestions from Trump's transition team appear to be aimed at encouraging domestic Battery production in the USA, primarily for defense-related interests. There are also some proposals that seem intended to protect USA Auto Manufacturers, even those that produce electric Autos.