YORK, PA: Republican presidential candidate Donald Trump announced on Monday that, if elected, he might eliminate the $7,500 tax credit for electric vehicle (EV) purchases and is open to appointing Tesla CEO Elon Musk to a cabinet or advisory role.
In an interview with Reuters, Trump expressed skepticism about tax credits and incentives, stating, “Tax credits and tax incentives are not generally a very good thing.” He indicated he could take steps to reverse current Treasury Department rules that facilitate the $7,500 EV credit or might push for Congress to repeal it entirely. Trump had previously attempted to repeal the EV tax credit during his presidency, a move that was later countered by President Joe Biden’s expansion of the credit in 2022.
When asked about Musk, who recently endorsed Trump in the presidential race, Trump praised him, saying, “He’s a very smart guy. I certainly would, if he would do it, certainly would. He’s a brilliant guy.”
Trump also signaled plans to challenge current policies encouraging automakers to produce more EVs and hybrids, citing issues related to cost and battery range. He suggested that the market for EVs could be “much smaller” than anticipated.
Additionally, Trump proposed imposing new tariffs to discourage the export of vehicles produced in Mexico and to prevent Chinese automakers from establishing new plants in Mexico for the U.S. market. However, he expressed openness to Chinese and other foreign automakers building plants in the U.S. with incentives for local production.
Separately, Trump criticized Alphabet’s Google, which was recently ruled an illegal monopoly, but did not specify penalties. He labeled Google’s practices as being akin to the “Wild West” and suggested significant consequences.
Trump also addressed the issue of TikTok, expressing reluctance to ban the app despite a law requiring Chinese owner ByteDance to divest its U.S. assets by January 2025. Trump emphasized the complexities of banning such platforms, noting the intersection with free speech issues.
