Trump says no state would be allowed to ban gasoline-powered cars if he is elected

investing.com 03/10/2024 - 20:22 PM

Trump Vows to Ban State Restrictions on Gasoline-Powered Vehicles

By Alexandra Ulmer and David Shepardson

(Reuters) – Republican presidential candidate Donald Trump stated on Thursday that if elected in November, no state would have the ability to ban gasoline-powered cars or trucks. This move is aimed at highlighting the future of the auto industry as a central campaign issue.

Trump is focusing on winning voters in Michigan, a crucial swing state in the 2024 presidential election and home to the Detroit Three automakers. In August, he mentioned he is considering eliminating the electric vehicle tax credit.

“When I’m president, no state in America will be permitted to ban gas powered cars or trucks, and I guarantee it – no way,” Trump declared at a rally in Saginaw, Michigan. “You’re going to make them right here.”

Vice President Kamala Harris’ campaign did not respond immediately to a request for comment.

In May 2023, California asked the Environmental Protection Agency (EPA) for a waiver under the Clean Air Act to mandate that all new vehicles sold in the state by 2035 must be electric or plug-in hybrids. In August 2022, California had approved its pioneering plan to cease the sale of gasoline-only vehicles by 2035.

The state aims to establish annual increasing zero-emission vehicle requirements starting in 2026, a model also adopted by 11 other states.

The Biden administration has refrained from endorsing a specific timeline for phasing out gasoline-only vehicles while providing billions in new tax credits and grants to facilitate the transition to electric vehicles (EVs).

President Biden has set a goal for 50% of new vehicles to be EVs by 2030, asserting their necessity for competing with China.

In March, the EPA finalized regulations intended to reduce vehicle emissions by 49% by 2032 relative to 2026 levels. The EPA forecasts that between 35% and 56% of new vehicles sold between 2030 and 2032 will be electric to comply with rigorous emissions standards.

Automakers have expressed skepticism about California’s 2035 plan, suggesting that while EV requirements might be achievable in California initially, the outlook is less certain for other states with much lower levels of EV sales.

California’s proposed EV rules aim to reduce smog-causing emissions from light-duty vehicles by 25% by 2037. The regulations require that 35% of new cars sold be plug-in or zero-emission by 2026, increasing to 68% by 2030 and reaching 100% by 2035.

Costs for these rules are estimated at $210 billion, but California anticipates total benefits of $301 billion through 2040, allowing manufacturers to sell up to 20% plug-in vehicles by 2035.




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