Trump promises to eliminate EV requirement on first day; extends invitation to China for building EVs within the U.S.

Former President Donald Trump used his nomination speech at the Republican National Convention in Milwaukee to criticize President Joe Biden’s electric vehicle policies. Trump vowed to end the electric vehicle mandate on his first day in office, claiming it would save the U.S. auto industry from collapse and save consumers thousands of dollars per car. Despite the fact that the Biden administration does not have a mandate on electric vehicles, critics of new air-pollution limits issued by the Environmental Protection Agency in March have argued that they would effectively force automakers to sell EVs. Trump also made conflicting remarks inviting Chinese auto companies to build plants in the U.S. while threatening to impose tariffs on cars entering the country from China. His comments on EVs were followed by criticism of the supposed trillions of dollars wasted on green initiatives, which he claimed would be better spent on infrastructure projects. Biden’s administration has already made strides in this area with the Infrastructure Law.

### China’s Role in the Auto Industry
Trump’s speech included calls for China to build electric vehicles in the U.S., despite his previous warnings about the country taking advantage of American workers. Chinese automakers are already expanding their footprint in Mexico, with plans to sell cars in the U.S. market. Both Trump and Biden aim to prevent these made-in-China vehicles from entering the country to protect domestic manufacturers, with Biden specifically targeting companies with ties to Chinese government entities.

### Contrasting Views on Electric Vehicles
Trump’s criticism of electric vehicles reflects his belief that they are ineffective and will ultimately benefit China and Mexico. In contrast, Biden has made the transition to electric vehicles a key part of his climate and industrial policies, aiming for 50% of new vehicle sales to be electric by 2030. The two politicians also differ in their approaches to China, with Trump fostering a more transactional relationship with Chinese auto companies while Biden takes a more cautious stance.

### Protectionist Measures and Election Strategies
Both Trump and Biden are seeking to appear tough on Beijing as they approach a potential election rematch. Trump has referred to Covid-19 as the “China virus” and highlighted his past trade negotiations with China during his presidency. Biden’s administration has taken steps to exclude Chinese-owned companies from tax credits and investigate vehicles with Chinese-made software that may compromise the data and safety of U.S. citizens. The issue of China’s role in the auto industry and the push for electric vehicles is likely to be a key point of contention in the upcoming election cycle.

### The Future of the Auto Industry
The debate over electric vehicles and Chinese involvement in the U.S. auto market highlights broader questions about the future of the industry. While Trump advocates for protecting American autoworkers and emphasizing traditional infrastructure projects, Biden sees electric vehicles as a key component of combating climate change and driving innovation in the industry. The outcome of the election will likely shape the direction of U.S. auto policy for years to come, with implications for domestic manufacturers, consumers, and global trade relations.

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