Breaking Down Biden’s EV Mandate
Before diving into the potential problems with President Biden’s electric vehicle (EV) mandate, it’s first important to understand the law itself.
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Essentially, Biden decreed that two-thirds of all vehicles manufactured within the United States must be at least partially electric by 2032. As transportation is the single largest source of carbon emissions in the nation, Biden hopes that this plan will significantly combat the changing climate.
The EV Mandate Is Coupled With Extensive EPA Regulations
The mandate and the EPA’s most recent regulations were certainly shocking for many as, of 2023, only 7.6% of all cars on the road are even partially electric.
Source: iStock
That would mean sales would need to increase by more than 800% to reach Biden’s goal.
The Biden Administration Will Spend Billions on EV Infrastructure
The Biden administration plans to take “[action] to lower the cost of electric vehicles (EVs) for Americans and build a convenient, reliable, Made-in-America EV charging network.”
Source: Freepik
However, according to the White House Fact Sheet, he will spend billions to make that happen.
Biden Promised Americans Can Still 'Buy Any Kind of Car They Want'
After hearing of Biden’s EV mandate, former president and candidate for 2024, Donald Trump, spoke out against the new legislation and his nemesis, Biden. Trump said if he is not elected and Biden is able to go through with his EV plan, it will be a “bloodbath for the country.”
Source: Freepik
In response to Trump’s comments, Biden made sure to explain during his last address that Americans will still be able to “buy any kind of car they want.” But experts wonder just how true that statement is.
Biden’s Policy Will Limit the Number of Gas-Powered Cars Made in the USA
Those who don’t agree with Biden’s EV mandate, of whom there are millions, have several issues with the plan. But one very obvious side effect is that fewer gas-powered vehicles will be manufactured in the U.S. over the next decade.
Source: Freepik
According to Geoff Moody, the senior vice president of American Fuel & Petrochemical Manufacturers explained that new internal-combustion-engine car sales will decrease from 84% where they sit now to below 30% in 2032.
Limited Ability Means Higher Prices
Moody told Fox News that Biden’s EV policy “is functionally a ban on sales of most new gas cars by 2032.” He continued, “The policy is going to both limit the availability of new gas cars and push the cost of remaining gasoline-powered vehicles out of reach for most Americans.”
Source: iStock
If gas-powered cars are too expensive or unavailable, Americans will be forced to purchase an electric vehicle. However, as of this moment, EVs are far more expensive than standard-engine cars. Therefore, millions will likely opt for a foreign-made option, which could lead to a complete collapse of the auto manufacturing industry.
President Biden Is Trying to Ensure Americans Only Buy US-Made Vehicles
The average cost of a used car in the U.S .is $27,297, while the average price paid for a new gas-powered vehicle is only $47,338. But for a new EV (and at this point in time, there are only new EVs for sale), the starting cost is more than $60,000. On the other hand, EVs are selling for less than $10,000 in China.
Source: iStock/Shutterstock
So, in order to ensure that millions of Americans don’t simply go overseas to purchase their next vehicle, he has implemented new import taxes. Specifically, Biden announced a 100% tariff fee on EVs made in China.
Some Politicians Argue Biden’s EV Mandate Is Unconstitutional
In addition to the economists, several Republican politicians are vehemently against Biden’s EV policy. Kansas Senator Roger Marshall is opposing the legislation via a Congressional Review Act, essentially challenging the legality of the plan.
Source: Marshall.senate.gov
Sen. Marshall explained, “Energy costs have significantly risen nationwide, and Americans are feeling it. Piling on regulatory burdens on the oil and natural gas industry at this time would only further exacerbate this trend. The Biden Administration has taken their war on American energy and oil producers too far. I will not bow down in this fight against strangling our producers with Washington D.C.’s red tape.”
Biden May Be Saving the Planet, But He’s Killing the Economy
Senator Marshall certainly isn’t alone in his concerns. Millions of Americans, including many financial experts, worry that even if Biden is saving the planet, he is killing the economy in the meantime.
Source: Freepik
Inflation is already high, and Americans are struggling to pay their bills, let alone buy a new car. If things go ahead as they are now, there may come a time over the next decade when no one can purchase a car, and the entire auto industry will implode like a dying star.
Biden and the EPA Defend Their Policies, Claiming They Are Saving Americans Money
As with any political debate, there is another side to this story. While some say that Biden’s EPA policy will all but destroy the American economy, supporters claim it will both enhance the economy and protect the planet from ultimate destruction.
Source: Freepik
A White House spokesperson explained that Biden and his administration are “investing in a future that is made in America by American workers as we position the United States to lead the clean energy future.” The EPA took it even further, saying, “By encouraging continued development of more efficient vehicles, EPA’s standards are also projected to save Americans on average about $6,000 over the lifetime of a new model.”
What’s Next for the American Auto Manufacturing Industry?
With the U.S. presidential election right around the corner, many are wondering if Biden’s EV mandate will still exist in six months. If Trump wins back the Oval Office, he has already said he will overturn the legislation.
Source: Freepik
But in order to do so, Trump needs the support of Congress, and no one knows yet which way they will vote on the matter. So, for now, it seems America, and specifically the auto manufacturing industry, will have to wait to learn their fate.