Will Trump Clash With Musk Over EV Tariffs?
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Throughout his campaign, Donald Trump has railed against Joe Biden’s climate policies, vowing to row back spending on green energy, and boost drilling for oil and gas to “further defeat inflation.”
Donald Trump may help Tesla and the domestic EV industry by imposing very high tariffs on Chinese EV exports to the US, Dr. Mamdouh G. Salameh, a global energy expert, told Sputnik.
“This will give a domestic boost to Tesla,” he said, “in return for the financial and political support” that Tesla CEO Elon Musk provided to his election campaign.
MUSK VOWS TO CUT US BUDGET SPENDING BY $2 TRILLION IF TRUMP WINS
— Sputnik (@SputnikInt) October 28, 2024
US entrepreneur Elon Musk has promised to cut US budget spending by at least $2 trillion if Republican candidate Donald Trump wins the presidential election in November.
Musk was one of headliners of Trump's… pic.twitter.com/RG9FaLJF96
Weighing in on Trump’s campaign pledges to “end the electric vehicle mandate on day one,” geopolitical commentator Thomas W. Pauken II speculated that Biden’s EV subsidies were “not exactly very business-orientated.”
“It was a case of having government spending on unpopular EVs… It didn't make the cars cheaper. It just made it cheaper for the manufacturers to produce the cars and to even go head over heels over increasing automated manufacturing. So, the subsidies, rather than invest into human labor or to lower the cost, instead went to the manufacturers to automate their factories,” he underscored.
The president-elect is “correct for opposing these types of subsidies,” the pundit said.
“When Biden was having to decide on what companies would get the subsidy, I'm pretty sure that he looked at the DNC donors list to see who is more worthy of the subsidies and who is not,” Pauken II added.
Biden made EVs the centerpiece of his administration’s bid to fight climate change, allocating billions to manufacturers, the National Electric Vehicle Infrastructure (NEVI) program to install more EV chargers, incentives for battery factories, and tax credits for buyers.
Trump, however, has slammed EVs as too expensive and undermining the American auto industry. In his nomination speech at the Republican National Convention, Donald Trump said that he would “end the electric vehicle mandate on day one,” adding that this would result in “saving the US auto industry from complete obliteration, which is happening right now, and saving US customers thousands and thousands of dollars per car.”
Elon Musk, who donated over $119 million to a political action committee in his support, according to Federal Election Commission filings, has dismissed concerns about a potential end to Biden’s EV tax credit. “Take away the subsidies. It will only help Tesla,” Musk posted on X in July.
Shares of Tesla, Inc. soared 15% on the results of the November 5 election, adding roughly $15 billion in value to Musk’s net worth.
24 September, 11:12 GMT
Donald Trump’s goal is to get US oil companies to boost production as much as possible, international oil economist Dr. Mamdouh G. Salameh told Sputnik.
He will “ensure that he and his country aren’t a part of global green energy initiatives,” the global energy expert noted.
“President Trump’s position on fossil fuels and green energy is very well known. He favors more oil production at prices ranging from $65-$70 a barrel for the benefit of the United States’ economy. He also wants to make the US energy independent. Trump doesn’t support climate change goals. That is why he withdrew America from the Paris Treaty on Climate Change,” the pundit remarked.
In 2017, the Trump administration announced that it would withdraw the US from the Paris Agreement on climate change mitigation, contending that it would "undermine" the economy. The Paris Agreement, a landmark climate accord signed in the French capital in 2015, aims to keep global average temperature increases below two degrees Celsius (3.6 degrees Fahrenheit) by reducing greenhouse gas emissions.
While Trump is determined to encourage American oil companies to boost output to “depress oil prices and also undermine OPEC+’s production policies,” his ability to influence global energy prices “will to some extent be very limited,” the expert speculated.
“The reason is that American oil production, including shale oil, has virtually peaked, so we may not expect any more oil additions from American companies. The same logic applies to gas production, particularly because of rising domestic demand affecting the US LNG exports to Europe,” the economist explained.
He projected that gas and LNG prices would rise significantly in 2025 due to rising demand, adding:
“Oil prices will also rise somewhat, but they will continue to face considerable pressure to depress them from market manipulation orchestrated by the US and in cahoots with the IEA and oil traders.”
Trump has been vocal throughout his campaign about rolling back Biden’s signature renewable energy policies, instead laying emphasis on fossil fuels. He has justified such changes as vital to slash energy costs and attain “energy dominance.” Trump vowed to “further defeat inflation” by terminating Joe Biden’s Green New Deal, which he labeled “the Green New Scam,” claiming it was a “waste” of money.
“It actually sets us back, as opposed to moves us forward. And [I will] rescind all unspent funds under the misnamed Inflation Reduction Act,” Trump added, in a nod at Biden’s signature climate law adopted in 2022 to promote clean emissions.
