Amid Trump’s Anti-EV Push, Senate Republicans Propose Tax Bill To Axe $7500 EV Credit – General Motors (NYSE:GM)

Senate Republicans seek to end the $7500 EV credit currently available on EV purchases amid U.S. President Donald Trump‘s crackdown on all-electric mobility in the country. 

What Happened: The GOP representatives in the Senate want to end the Federal EV credit within 180 days after the proposal is signed into law, Reuters reported on Monday.

The proposal also seeks to end the $4000 credit on used EVs within 90 days of the bill’s approval, as well as an immediate end to the $7500 credit on EVs manufactured outside of the U.S., the report suggests.

According to the report, Senate Republicans’ tax proposal differs from the bill proposed by House Republicans, which states that automakers that have yet to hit the 200,000 EV units sold can still avail the credit till the end of 2026.

Why It Matters: The proposal is in line with the Trump administration’s crackdown on EVs, as a part of which, the President signed a resolution that overturned California’s EV mandate that sought to phase out ICE-powered vehicles by 2035. 11 other states also adopted the California bill.

Trump’s reversal of the resolution could be a major boost for General Motors Co. GM, which was against the California mandate due to it not reflecting the reality of the market, according to a company-wide email the management shared.

The President also hinted that he may hike automotive tariffs in a bid to boost domestic production in the U.S., casting more uncertainty over the auto industry, which is already grappling with supply chain issues and tariff-related woes.

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