Energy Secretary Jennifer Granholm raised concerns on Friday about President-elect Trump’s potential plan to eliminate consumer subsidies for electric vehicles (EVs), suggesting it could primarily benefit China.
Granholm stated that removing these credits would result in the U.S. losing its competitive edge, particularly to China. “If we allow this, we’re essentially giving up control to other nations,” she said at the COP29 global climate summit in Baku, Azerbaijan.
Energy Secretary Granholm at COP29 urges U.S. to keep EV incentives to maintain global industrial edge
She emphasized that if the U.S. intends to remain competitive, it must continue to support these incentives. “Without these credits, we lack an industrial strategy,” Granholm warned, highlighting the importance of maintaining these programs to ensure successful competition on the global stage.
While Trump did not directly address the future of the EV tax credit during his campaign, he has reportedly shown intentions to eliminate the $7,500 incentive for consumers purchasing eco-friendly vehicles. According to sources cited by Reuters this week, Trump’s team is pushing for the removal of the credit, although such changes would require legislation by Congress.
It remains unclear which specific elements of Biden’s climate policies, including the expanded EV credit, Republicans may target for repeal. However, some GOP members have indicated interest in curtailing or removing this particular incentive, even if they do not seek to dismantle the entire Inflation Reduction Act.
