Republican presidential candidate Donald Trump said Monday that he might consider ending the $7,500 tax credit for electric vehicle (EV) purchases if he is elected. In addition, Trump expressed openness to appointing Tesla (NASDAQ:TSLA) CEO Elon Musk to a cabinet or advisory role.
"Tax credits and tax incentives are not generally a very good thing," Trump remarked in an interview with Reuters after a campaign event in York, Pennsylvania, when questioned about the EV credit.
When asked if he would consider naming Musk to a role in his administration, Trump responded, "He's a very smart guy. I certainly would, if he would do it, I certainly would. He's a brilliant guy."
Musk recently endorsed Trump in the U.S. presidential race, which adds another layer of potential collaboration between the two if Trump were to win the election.
If elected, Trump could attempt to reverse Treasury Department rules that have simplified the process for automakers to benefit from the $7,500 credit. Alternatively, he might ask Congress to repeal the credit entirely. During his presidency, Trump sought to eliminate the EV tax credit, which was later expanded under President Joe Biden in 2022.
"I'm not making any final decisions on it," Trump said regarding the EV tax credit. "I'm a big fan of electric cars, but I'm a fan of gasoline-propelled cars, and also hybrids and whatever else happens to come along."
Trump also indicated he would revoke Biden administration regulations that push automakers to produce more EVs and plug-in hybrids to comply with stricter emissions standards. He expressed skepticism about the future market for EVs, citing concerns over cost and battery range, and suggested a "much smaller market" for them.
Moreover, Trump voiced his intention to discourage the export of vehicles produced in Mexico by U.S. automakers through new tariffs. He also warned against Chinese automakers establishing plants in Mexico to serve the U.S. market, echoing similar threats he made during his presidency.
"If you put tariffs on those cars, they're going to make it here," Trump said, arguing that imposing tariffs would compel manufacturers to produce vehicles in the United States.
Despite his stance on tariffs, Trump is open to foreign automakers, including those from China, building vehicles within the U.S.
"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," the former president said, emphasizing his desire to prioritize domestic car production.
"We will make our own cars. I want to make our own cars."
Vice President Kamala Harris holds a 3-point national lead over former President Trump, with a CBS News/YouGov poll showing her ahead 51 percent to 48 percent. However, the two are tied at 50 percent support in key battleground states, including Arizona, Georgia, Michigan, North Carolina, Nevada, Pennsylvania, and Wisconsin.