In big shifts for Michigan, Trump scrapping EV ‘mandate’ and ‘Green New Deal’

• President Donald Trump, in his inaugural address, promised a shift in the federal government’s electric vehicle policy
• It wasn’t immediately clear whether Trump would end a $7,500 credit for electric car purchases
• Trump says he’s also moving to revoke ‘Green New Deal,’ a likely reference to the Inflation Reduction Act

On his first day in office Monday, President Donald Trump vowed to end a so-called “electric vehicle mandate” and wind down green energy initiatives backed by former President Joe Biden, potentially disrupting plans by Detroit automakers and ongoing environmental efforts in Michigan. 

Trump didn’t elaborate on specifics during his inaugural address in the Capitol Rotunda, and as of 5 p.m. had not signed any related executive orders. But he vowed that US automakers “will build automobiles in America again at a rate that nobody could have dreamt possible.” 

Trump’s plan is expected to involve rolling back Biden-era emissions standards that would likely have resulted in two-thirds of new vehicles sold in the US to be zero emission by 2032. 

Those rules did not amount to a mandate for electric vehicle production or purchases, though Trump and his allies claimed they did and argued the federal government shouldn’t subsidize a shift toward EVs.

It's not immediately clear if Trump will also seek to end a $7,500 tax credit for consumer EV purchases, which he promised to do on the campaign trail.

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Trump supporters who traveled to Washington for the inaugural festivities praised his plans to reverse EV policies. 

"There should be no mandates at all," said Ken Thorn of Newaygo County.  I’m not going to be forced (into) what vehicle I drive.”

What it means for Michigan

Any policies that impact the auto industry will reverberate throughout the state, home to the “Big Three” Detroit automakers and numerous related suppliers. All told, Michigan is home to 12 assembly plants and 21% of nationwide auto production, and it’s in a race with other states, China and Tesla over the EV market.

Nationally, EV sales have increased in recent years. US consumers purchased a record 1.3 million EVs in 2024, up 7.5% over 2023, according to Cox Automotive research group, which attributed the bump to strong incentives by automakers and the government.

Michigan drivers have been slow to transition from gas: Only 3.2% of new car sales are electric vehicles, compared to about 9% nationwide. In all, less than 1% of vehicles on Michigan roads are plug-ins, about 43,000.

Detroit automakers have invested heavily in the transition to EVs, and Michigan has aided them. 

The state has invested $1 billion in five electric vehicle battery plant proposals and promised another $1 billion, but most projects are behind schedule and as of June employed just 200 of more than 11,000 promised workers. 

As of November, roughly 165,000 Michiganders worked in vehicle or parts manufacturing jobs. All told, Michigan is home to nearly 300,000 auto sector jobs, along with many other indirect jobs, and generated $227 billion in gross domestic output, about 18% of the state's total. 

The US has incentivized EV purchases through tax credits. The current $7,500 credit is available for EV and plug-in hybrid SUVs and trucks that meet various eligibility criteria, including trucks that cost $80,000 or less and sedans that cost $55,000 or less.

As of January, 10 vehicles made by Detroit automakers qualified for the credit, including five produced by GM, three by Ford and two by Stellantis. 

Tesla CEO Elon Musk, who sat two rows behind Trump during the president's midday inauguration, has predicted ending the $7,500 tax credit would hurt Detroit automakers more than his company, which is based in Texas. 

“It would be devastating for our competitors and for Tesla slightly,” he reportedly told investors in a July earnings call. 

A change of course on electric vehicle policy was one of many plans announced by Trump Monday as he returns to the Oval Office. 

Here’s a look at other proposals he’s outlined so far and how they could impact Michigan residents. 

Revoke 'Green New Deal,' withdraw from Paris Agreement

In his inaugural address, Trump said he would take first-day action to revoke the "Green New Deal.” 

He likely meant the Inflation Reduction Act, a law Biden signed in 2022 that ramped up federal spending on clean energy projects. 

Trump previously called the measure a “green new scam” and promised to rescind unspent funds and expand tax breaks for fossil fuels. 

“We will redirect that money for important projects like roads, bridges, dams, and we will not allow it to be spent on meaningless Green New Scam ideas,” Trump said in July at the Republican National Convention.

Trump also said Tuesday he would again withdraw the United States from the Paris Agreement, a non-binding accord between United Nations countries vowing to do what they could to mitigate climate change. He also withdrew from the pact in 2019 but Biden later rejoined it. 

He will also move to roll back energy efficiency regulations on household appliances to “empower consumer choice,” according to his administration.

What it means for Michigan 

Michigan has so far been a top  beneficiary of climate funds through the Inflation Reduction Act.

Biden in recent months raced to allocate much of the funding, which could make it impossible to roll back. But Trump has previously said he would try. Fully repealing the law would require congressional approval. 

As of October, 62 projects totaling $26.2 billion had been announced for Michigan, including a GM plant in Lansing being retooled for EVs, a nickel mine west of Marquette to help supply EV battery manufacturing and potential restart of the shuttered Palisades nuclear power plant. 

However, only six of those projects were operational, leaving many of the rest vulnerable to clawbacks if Trump revokes additional IRA spending. 

Withdrawing from the Paris Agreement, meanwhile, is unlikely to have much of a direct impact on Michigan, where Gov. Gretchen Whitmer already committed the state to similar goals last time Trump was in office and withdrew from the agreement.