Senate Vote to Halt EPA EV Mandate Fails; U.S. Trade Chief Pledges Action on Chinese EVs
This week a vote in the U.S. Senate on an amendment offered by Senator Mike Crapo (R-Idaho) and Senator Joe Manchin (D-W.Va.) to prohibit the use of funds to implement, administer, or enforce the Environmental Protection Agency (EPA) tailpipe emissions regulation failed. Several Democrats voted with Republicans in the 52-46 vote, but the effort ultimately fell short of the needed 60 votes to pass.
Yesterday twenty-five Republican Attorneys General sued to block the EPA from implementing its tailpipe emissions regulation finalized in late March, asserting that the regulation goes beyond the EPA’s authority under the Clean Air Act, and will amount to a total restructuring of the auto industry.
The White House this week also announced the establishment of a new Climate and Trade Task Force with the goal of reducing emissions caused by global trade.
US Trade Chief on Hill
This week U.S. Trade Representative (USTR) Katherine Tai made her annual trip to Capitol Hill to brief the House Ways & Means Committee and the Senate Finance Committee on the Biden Administration’s trade agenda. During the two days of testimony, Tai told the committees that she believed that the U.S. must take “decisive” action against the potential import of Chinese EVs into the U.S.
On the same day that Tai testified before the Senate Finance Committee, President Joe Biden announced that his administration is calling for the tripling of the current 7.5 percentTrump-era Section 301 tariffs on Chinese steel and aluminum imports, on top of the 25 percent Section 232 tariff on steel and 10 percent tariff on alumimum also imposed under the Trump Administration. USTR has been conducting an ongoing review of the Section 301 tariffs and USTR Katherine Tai told the congressional committees that she expected the reviews to be concluded very soon.
House Committee Moves Bills to Tighten EV Tax Credit
The House Ways & Means Committee marked up and advanced along party lines several bills this week. The End Chinese Dominance of Electric Vehicles in America Act, which would tighten language in the Inflation Reduction Act related to “Foreign Entities of Concern,” was introduced by Rep. Carol Miller (R-W.Va.) on Monday. The Stop Executive Overreach on Trade Agreements Act, introduced by Rep. Michelle Fischbach (R-Minn.) on Monday, would bar the Biden administration from designating a “critical mineral agreement” as a fully fledged free trade agreement in order to allow electric vehicle batteries produced in a foreign country to qualify for EV tax credits under Inflation Reduction Act. The U.S. and E.U. have been in ongoing discussions on a critical mineral agreement.
Take Action
The EPA tailpipe regulation will require as much as 56% of new vehicles sold be electric by 2032, with an additional 16% hybrid vehicle sales, and does not take into account the reality of the current marketplace, which dealers know all too well. Congress should continue to weigh in with the Biden Administration that time is needed for infrastructure to catch up with the ambitious targets, and that consumer choice must be protected.
Quotes of the Week
“China, or any adversary for that matter, should not have any access to American tax credits.”
-Rep. Carol Miller (R-W.Va.) (Automotive News)
“It’s hard to find anyone who believes that tariffs have been effective. They have not altered China’s policies one iota and have cost the American economy in money and lost jobs.”
-Fareed Zakaria, Columnist, Washington Post (Inside U.S. Trade)
“We have to take a serious look at our international economic systems, including trade, and harness them for climate action. Global trade is a huge contributor to the climate problem.”
-John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation (Politico)
ICYMI
In case you missed it, Jenell Ross, a former Chairman of AIADA, is celebrating 50 years at the helm of the nation’s only black woman-owned Buick, GMC, and Mercedes-Benz dealership. Check out the story from CBT News here.
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Rallye Motor Company, which has dealerships in Westbury, Rosyln, and Glen Cove, NY, partnered with Donate Life New York State, a nonprofit organization, to raise awareness about the life-changing impact of organ, eye and tissue donations. (h/t LI Herald)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
