Trump Mulls EV Credit Cut, Praises Musk, and Plans Auto Industry Shake-up
Former President Trump considers ending EV tax credits, welcomes Elon Musk as potential adviser, and proposes new tariffs on Mexican-made cars. He also criticizes Google and defends TikTok in a wide-ranging interview.
In a recent interview in York, Pennsylvania, Donald Trump shared his views on various topics, including the automotive industry, tech giants, and potential cabinet appointments. The former president, now running for the Republican nomination, outlined several policy considerations that could significantly impact the US economy and international relations.
Trump expressed skepticism about the $7,500 electric vehicle (EV) tax credit, which was first introduced in 2008 and expanded by President Biden in 2022. "Tax credits and tax incentives are not generally a very good thing," Trump stated, suggesting he might consider ending the program if re-elected. This stance could potentially affect the growing EV market, which has seen significant expansion since the first mass-produced electric car, the Nissan Leaf, was introduced in 2010.
The former president also showed openness to naming Elon Musk, co-founder of Tesla Motors in 2003, to an advisory or cabinet role. Trump praised Musk's intelligence, calling him "a brilliant guy." This consideration comes after Musk publicly endorsed Trump for the presidency last month.
Regarding the automotive industry, Trump proposed new tariffs on Mexican-made vehicles to discourage exports to the US market. This move could potentially impact the implementation of the US-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020. However, Trump expressed willingness to welcome Chinese automakers to build plants in the US, stating, "We're going to give incentives, and if China and other countries want to come here and sell the cars, they're going to build plants here, and they're going to hire our workers."
Trump's automotive policies could have far-reaching effects, considering that China has been the world's largest automobile market since 2009, and the US automotive industry employs about 4% of the American workforce.
The interview also touched on tech giants, with Trump harshly criticizing Google but declining to specify potential penalties. This criticism comes in the wake of a recent ruling that Google operates as an illegal monopoly, adding to the company's antitrust challenges faced globally since 2010.
Interestingly, Trump defended TikTok, the short video app launched in 2016 by ByteDance, citing free speech concerns. This stance contrasts with a law approved in April 2024 that sets a January 19, 2025 deadline for ByteDance to divest TikTok's US assets. Trump's defense of the platform, which boasts over 1 billion active users worldwide as of 2024, highlights the complex interplay between technology, free speech, and national security concerns.
"It's very hard to ban something like that, because you're talking about free speech. You're talking about a lot of different things go into that equation, but TikTok has treated me very well."
As the 2024 presidential race heats up, Trump's policy proposals and potential cabinet considerations continue to spark debate and discussion across various sectors of the American economy and society.
