The Trump transition team is considering significantly reducing government subsidies for electric vehicles (EVs) and imposing tariffs on battery materials, aiming to encourage domestic production and reduce reliance on China. According to Reuters, the team’s internal documents recommend scaling back EV support programs, such as eliminating the $7,500 tax credit from the Inflation Reduction Act (IRA).

The team proposes diverting $7.5 billion in EV charging station funds into battery and critical mineral processing, emphasizing that EV supply chains are vital for national defense, unlike EV infrastructure.

The plan includes using Section 232 of the Trade Expansion Act, which allows tariffs on imports that threaten national security. This strategy would initially impose tariffs on all battery materials globally while negotiating exemptions for allies.

Such measures could impact companies like GM, Hyundai, and Tesla, as well as South Korean battery manufacturers, which rely on imported materials. However, U.S.-Korea partnerships remain crucial due to limited domestic production capacity.

Additional proposals include restricting EV battery technology exports to adversaries, repealing federal mandates for EV purchases by government agencies, and easing EPA emissions standards set under the Biden administration.

For further details, consult the original article on Yonhap News or Reuters.