By Brian Roberts
The new federal administration’s policies have had a significant impact on both the electric vehicle (EV) and internal combustion engine (ICE) industries in the United States. With this new administration just getting started, there have been many changes and more to come. Here are some key points:
Electric Vehicle Industry
The new administration has taken several actions that have affected the EV industry. One of the most notable actions was the termination of the National Electric Vehicle Infrastructure (NEVI) funding. This program was designed to support the development of EV charging infrastructure across the country. The pause on $5 billion in NEVI funding created market disruption and uncertainty, although it did not affect projects with fully executed grant agreements. Despite the suspension, the U.S. was already lagging in its rollout of charging stations, with only 40,000 public charging installations added in 2024, far below the needed 175,000 new chargers per year through 2032.
Read this article with all images in the digital issue of Engine Professional magazine https://engineprofessional.com/2025EPQ2/#p=84
The administration’s tariff policies also had a profound effect on the EV industry. The imposition of a 25% import tariff on goods from Canada and Mexico, as well as potential duties on imports from China and the European Union, threatened to increase the cost of vehicles and parts. This created uncertainty for automakers and consumers, potentially affecting buying decisions and the overall market dynamics.
Internal Combustion Engine Industry
The new administration has also taken steps to support the ICE industry. One of the most notable actions was the rollback of emissions and fuel economy regulations for ICEs to 2019 standards. This move was intended to provide relief to automakers who have been vocal about the strangling effect of stringent emissions regulations on ICEs. By rolling emissions regulations back to 2019 levels, manufacturers can focus on ICE vehicles that consumers are demanding due to increased range, freedom to fill up anywhere and lower costs per vehicle.
The administration’s focus on reducing oil and fuel prices has also had a positive impact on the ICE industry. The rollback of emissions standards and the imposition of tariffs on EV supply chain imports, including batteries, critical minerals, and charging components, have created a more favorable environment for ICEs. This has allowed automakers to continue producing and selling ICE vehicles without the pressure of meeting stringent emissions standards.
Conclusion
The new administration’s policies have had a mixed impact on the EV and ICE industries. While the EV industry has faced challenges due to the suspension of NEVI funding, softening consumer demand and the imposition of tariffs, the ICE industry has benefited from the rollback of emissions regulations and the focus on reducing oil and fuel prices.
Moving forward, it will be essential for the U.S. to address these challenges to support consumer adoption of electric vehicles for those that want them while also providing relief to the internal combustion engine industry and consumers who choose them.
Read this article with all images in the digital issue of Engine Professional magazine https://engineprofessional.com/2025EPQ2/#p=84