Ever since Donald Trump won the 2025 U.S. Presidential election earlier this month, the automotive industry has been bracing for a number of potential changes. During his campaign, Trump discussed a variety of topics pertaining to the auto industry, ranging from adding tariffs to vehicles imported from Mexico to rolling back current President Joe Biden’s fuel economy and emissions standards to killing off the current EV tax credit. Now, a Ford-backed lobby group is aiming to prevent the federal EV tax credit from going away.
According to Reuters, the Alliance for Automotive Innovation (AAI) recently wrote a letter to Trump asking him to reconsider his reported plan to kill off the $7,500 EV tax credit, citing the threat of “heavily subsidized electric vehicles and technologies exported from China.” The letter also touches on existing emissions rules, in which the AAI spoke out against states like California having the ability to set their own standards. “Federal and state emissions regulations (particularly in California and affiliated states) that are out-of-step with current auto market realities and increase costs for consumers,” the letter stated, with the organization instead asking for “reasonable and achievable” emissions regulations.
In addition to this, the Ford-backed lobby group – which represents essentially every major automaker in the U.S. – also asked Trump to reconsider recently-finalized rules that mandate the presence of advanced automatic emergency braking systems in all future vehicles by 2029 – something that AAI says is “practically impossible with available technologies.”
In addition to these concerns, it remains unclear if Trump will ultimately implement 100-200 percent tariffs on vehicles produced in Mexico that are then imported into the U.S., which he discussed during his campaign. If that does in fact become the case, Ford will certainly be impacted, as it currently builds a variety of models in that country, though it reportedly has no plans to move production to the U.S. Meanwhile, companies like China-based battery manufacturer CATL are awaiting word on whether or not Trump will allow them to erect factories in the U.S. moving forward, too.
Comments
We the people have spoken. Get rid of ev tax credits.
Or give a lower tax credit for all US built vehicles.
What happened to the North American Trade agreement the Trump agreed to the last time he was President?
This new tariff will only raise the prices for the American consumer as the companies will pass it onto the customers.
Also, look closely at the EV tax. His buddy Musk does not qualify, so it will not effect him and his company.
Ford just needs the manufacturer these in America not Mexico or China. Ford parent company Lincoln also needs to bring back the MKZ and the Continental and definitely the black label line on the MKZ stop shipping manufacturing to China our enemy ridiculous. If electric vehicles need a tax credit then ice do as well everybody knows the electric vehicle is not something green vehicle it’s powered by natural gas power plants along with coal. Electric vehicle of course is more efficient I’ve done the calculations comparing a coal fired power plant or natural gas any amount of CO2 produced from both including CO2 from a gasoline powered car but CO2 is not some vile substance water vapor is worse but holding on to heat I’ll CO2 does is make the trees and everything that relies on co2 to photosynthesize and create oxygen everybody knows this stupid green movement is complete bunk
I can’t believe Musk would be okay with no EV credit, especially now that Newsom is floating no rebate for Tesla buyers in California.