A Shift in Sustainability Policies in the United States

Due to global warming, sustainability had received strong support as part of worldwide preventive measures. However, the Trump administration has dealt a significant blow to these efforts. It would not be an exaggeration to say that the U.S. is no longer part of this initiative. From vehicle incentives to home solar panel subsidies, all such supports have been removed.

Most notably, the penalties imposed on automakers who do not produce electric vehicles—known as CAFE—have been abolished. (This was one of Tesla’s biggest sources of income.) The removal of the tax credit for electric vehicle purchases will impact all brands, including Tesla, although Tesla will be affected the least. Other manufacturers are likely to gradually withdraw from the electric vehicle market in the U.S.

For years, the U.S. has complained about not being able to export cars globally due to its unique emission standards and vehicle sizes. Yet, a U.S. brand—Tesla—managed to both export vehicles around the world and establish factories abroad, halting the steady decline of American carmakers.

In other words, the U.S. is essentially cutting off its golden goose. This administration, heavily backed by oil lobbies, believes it has achieved a major victory in its battle against sustainability. However, this lobby will likely not stop here and may work to spread this policy stance globally.

Falling behind in a technology where the U.S. could have taken the lead will ultimately be a significant setback for the country.