Trump may cancel $7,500 electric vehicle subsidy, but remains open to Chinese car owners

The former president said he could offer incentives to Chinese brands to build cars in the U.S.

Donald Trump has said he might eliminate the $7,500 federal tax credit for electric vehicles, despite his recent change of stance on electric vehicles after receiving strong support from Tesla CEO Elon Musk.

The former president and current Republican presidential candidate told reporters after a campaign event in York, Pennsylvania, that he doesn’t like the tax breaks but warned that he has not made a final decision on the electric vehicle credits.

Read: UAW files federal charges against Musk and Trump, accusing them of threatening workers

“Tax credits and tax incentives are generally not a good thing,” Trump told Reuters. “I’m not going to make any final decision on that. I like electric cars very much, but I also like gasoline-powered cars, and hybrids and everything else that comes along.”

While Trump made no commitments about the future of the electric vehicle tax credit, he said he would roll back rules implemented by the Biden administration that would force automakers to produce more electric and plug-in hybrid vehicles to meet strict emissions standards.

Trump has other plans for the U.S. auto industry. He said he would try to block the export of cars made locally by Ford, GM and Stellantis, while also imposing tariffs to prevent Chinese automakers from building plants in Mexico and then exporting vehicles to the United States.

Interestingly, the former president was open to Chinese automakers selling cars in the United States, but he insisted that they must also produce them locally.

“We’re going to provide incentives so that if China and other countries want to come here and sell cars, they’ll build factories here and hire our workers,” he said. “We’re going to make our own cars. I want to make my own cars.”

Elon Musk could also be appointed as an advisor or cabinet member if Trump wins the presidential race. “He’s a very smart guy. I would certainly do it if he wanted to. He’s a smart guy,” Trump explained.