Trump Regime

Kudlow Claims Trump Will End Subsidies for Electric Cars, Renewable Energy

JM Ashby
Written by JM Ashby

This could quickly vanish down the memory hole just like the overwhelming majority of Trump's proposals, but Larry Kudlow told reporters that Trump intends to unilaterally end subsidies for electric cars and renewable energy.

More specifically -- or perhaps less specifically -- Kudlow says they will end subsidies for anything that was "imposed during the Obama administration."

Asked about plans after General Motors Co (GM.N) announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under federal law.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

Asked about a timeline, he said: “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

The good news is Larry Kudlow has no idea what he's talking about and Trump can't end the subsidies.

Ending subsidies would require an act of Congress and I have serious doubts that even a Republican-controlled Congress would agree to end the subsidies. And, as you know, Democrats will take control of the House of Representatives next month.

Trump is clearly floating this idea because he wants it to appear as if he's punishing General Motors, but the truth is he's impotent. There's little if anything he can do.

I should say there's little he can do to make things better, but there's plenty he has already done to make things worse.

General Motors (GM) was probably going to restructure the company at some point in any event, but Trump certainly accelerated their plans by starting a trade war that has costs GM and other automakers billions of dollars in higher material costs.

I'm not qualified to say if General Motors is being more aggressive than they should be, but I can say what they're doing isn't happening in a vacuum. There are broad trends from increased automation to the shift toward all-electric vehicles and Trump's trade war that are driving the changes.

Several of the models GM is canceling (leaving factories with no orders) are plug-in hybrids. They're being canceled because the industry is moving toward all-electric vehicles that use no gasoline at all. Hybrids are on their death bed.

  • Draxiar

    For a man-thing who ran on being a savvy businessman he sure as shit can’t see the trends of business can he? Rather, his hatred of Obama overrides any business sense he might, with any luck, have.

  • muselet

    Once again I say, this administration’s obsession with fossil fuels—especially the filthiest ones (coal)—puzzles me. I fail to see the point, at least beyond the usual “own the libs” bollocks. As others have mentioned here (and elsewhere), much of it is about erasing Barack Obama from history.

    Even if that means submerging half of Florida.

    Battery-electric vehicles are poised to become mainstream, but current battery technology makes range and recharge times problematic for road trips; daily driving is generally not a problem, as explained here:

    Having both a BEV and a hybrid (plug-in or not) in the garage makes all kinds of sense.

    Ending subsidies would require an act of Congress and I have serious doubts that even a Republican-controlled Congress would agree to end the subsidies.

    Oh, how I hope that’s true.

    –alopecia

  • Nefercat

    “Kudlow says they will end subsidies for anything that was “imposed during the Obama administration.”
    ————————

    Not “after careful consideration”, not “subsidies in this category”, not “there are better ways than subsidies to achieve the desired effect.” Nope, they are ending ALL subsidies “imposed” during President Obama’s administration.

    We all knew that the sole, only, reason for a lot of trump’s actions was just to undo something that President Obama had done, regardless of whether it would be good or bad for the country.

    Real interesting to hear them go ahead and say it right out loud. Not surprising, mind you.

  • waspuppet

    “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

    Destroying everything Obama did is the only thing they really care about. Obama joked about Trump at the WHCD and Trump decided to run for president right then and there. That’s all that he’s doing; nothing else matters to him.

    • Badgerite

      No racism there. ( Sarcasm alert.)