Trump's EV Subsidy Repeal: A Turning Point in U.S. Energy Policy?

President-elect Donald Trump aims to repeal the $7,500 electric-vehicle purchase tax credit as part of broader tax reforms. This move, supported by key oil industry figures but opposed by the automotive sector, could significantly impact the EV market and President Biden’s clean energy initiatives.

The transition team of President-elect Donald Trump is reportedly considering eliminating the $7,500 tax credit for electric-vehicle purchases. This proposal is part of a broader tax-reform initiative, according to sources familiar with the discussions. Such a change could have significant repercussions for the already struggling U.S. electric vehicle market.

Elon Musk, a significant supporter of Trump and a major player in the EV sector, has noted that while the removal of the subsidy might slightly impact Tesla, it would severely affect other domestic EV manufacturers like General Motors. The conversation forms part of discussions led by energy magnate Harold Hamm and North Dakota Governor Doug Burgum.

The removal of this tax credit, a hallmark of President Joe Biden's Inflation Reduction Act, is a key focus for Trump's energy-policy transition team. This team aims to save costs to counterbalance extending Trump's prior tax cuts, seeking approval through a Republican-controlled Congress. The future of U.S. energy policy hangs in balance as Trump makes strides to roll back current clean energy initiatives.

(With inputs from agencies.)