Trump Policies Cost the Auto Industry a Staggering $25 Billion

The American automobile industry faces significant losses due to President Donald Trump’s opposition to green energy, Sarah K. Burris reported for AlterNet, citing New York Times journalist Bill Saporito.

Trump’s reelection in 2024 and imposition of tariffs on markets supporting EVs and fuel-efficient vehicles disrupted the supply chain between the U.S., Canada, and Mexico. (Photo: Ford Motor Company Facebook) 

Most car companies had shifted to prioritizing electric vehicles (EVs) before Trump canceled government support for the industry.

Saporito likened the policy shift to insisting that all music be available only on vinyl rather than digitally streamed.

“Ford Motor has mothballed production of the all-electric version of its flagship F-150 pickup truck and last month announced a $19.5 billion charge related to restructuring its EV business,” Saporito wrote.

“General Motors, citing the loss of tax incentives for EV buyers and laxer pollution regulations, switched production at its Orion, Michigan, plant from EVs to full-size SUVs and pickups powered by internal combustion engines (ICE).

In doing so, GM announced a $6 billion loss in the fourth quarter—on top of a similar $1.6 billion hit the quarter before.”

Saporito added: “The vindictive, oil-loving Mr. Trump, who equates green with ‘woke’ and dismisses climate change, has worked assiduously to cancel consumer tax incentives and billions in funding for EV charging and battery manufacturing projects.”

In total, Trump’s policies have cost automakers approximately $25 billion in losses.

The report compared the situation to 2008, when car companies focused on SUVs and trucks just as oil prices spiked, prompting buyers to shift to fuel-efficient vehicles like Toyotas and Volkswagens.

Following the housing market collapse, the federal government intervened with a $50 billion bailout for GM.

Detroit later accelerated EV programs, but Trump’s reelection in 2024 and imposition of tariffs on markets supporting EVs and fuel-efficient vehicles disrupted the supply chain between the U.S., Canada, and Mexico.

The main reason for Trump’s opposition, the report notes, is that President Joe Biden has championed the global EV transition. The $1.2 trillion Infrastructure and Jobs Act expanded support for EVs with larger charging networks along major interstates.