A group of 11 states, led by California, has filed a lawsuit against the administration of U.S. President Donald Trump to prevent the abolition of 2035 electric vehicle and clean truck standards.
Those standards are designed to help the Western U.S. state—the largest automotive market—ensure that 80 percent of vehicles sold in 2035 will be all-electric or plug-in hybrids.
Trump versus Newsom
"We have officially saved the United States' automotive industry from destruction by ending the California EV mandate," the president declared.
California Governor Gavin Newsom tore into the U.S. administration’s action: “Trump is attacking not only the environment but also the competitiveness of American industry.”
Legal action against the abolition of EPA waivers
The states — including Massachusetts, Colorado, New York, New Jersey and Washington — are asking a judge to declare Trump's order null and void. That order revoked Joe Biden's Environmental Protection Agency (EPA) waivers, which had given California the power to adopt its own CO₂ emission standards.
Industry rejoices, EPA counter-attacks
The Alliance for Automotive Innovation—representing GM, Toyota, Volkswagen, Hyundai, and Stellantis—welcomed Trump's policy, arguing that California's mandates are unrealistic, reduce consumer choice and weaken buyers’ purchasing power.
For its part, the EPA rejected the lawsuit, calling it a "California temper tantrum." Some experts believe Trump's abolition will cause the value of Tesla's emission credits to fall.
An anti-EV bill takes shape
In May, the U.S. House of Representatives approved a bill that could:
- • End the $7,500 tax credit on EV purchases.
- • Introduce an annual $250 tax for each EV to contribute to road maintenance.
- • Revoke certain CO₂ emission policies used by the industry.
- • Gradually eliminate, by 2028, tax credits related to EV battery production.
- • Remove certain penalties against manufacturers that do not comply with EPA fuel efficiency standards.