World
Trump’s Executive Order to End E.V. Subsidies Draws Pushback
If President Trump has his way, the auto industry’s transition to electric vehicles will soon slam into reverse. He will erase tax credits for electric-vehicle purchases, federal grants for chargers, and subsidies and loans to help retool assembly lines and build battery factories.
Executive orders issued by Mr. Trump on Inauguration Day amount to a sweeping repudiation of a centerpiece of former President Joseph R. Biden Jr.’s multibillion-dollar program to address climate change, which Republicans cast as a campaign to ban gasoline cars.
The orders also present a challenge to automakers that have invested billions of dollars in electric vehicles, in part because the Biden administration encouraged them to. But some of the orders appear to bypass Congress or federal rule-making procedures, which could make them vulnerable to lawsuits and even resistance from within the Republican Party.
While framed as a way to revive the American auto industry, the orders could cause U.S. carmakers to fall behind if they scale back their electric-vehicle programs while Asian and European automakers continue perfecting the technology, analysts say. Already, 50 percent of car sales in China are electric or plug-in hybrids, and Chinese automakers like BYD are selling more cars around the world, taking customers away from established car companies, including American manufacturers.
An executive order entitled “Unleashing American Energy” and signed by the president on Monday instructs federal agencies to immediately pause disbursement of funds allocated by Congress that were part of the Biden effort to push the auto industry toward vehicles with no tailpipe emissions.
Among other things, the funds helped states to install fast chargers along major highways and provided tax credits of up to $7,500 for buyers of new electric vehicles and $4,000 to buyers of used models. The credits effectively made the cost of buying some electric cars roughly on par with prices for cars with gasoline or diesel engines.
Mr. Trump also rescinded an aspirational Biden executive order that called for 50 percent of new vehicles sold in 2030 to be fully electric, plug-in hybrids or vehicles that run on hydrogen fuel cells.
And Mr. Trump said the administration would seek to revoke California’s authority to establish air-quality standards that are stricter than federal rules. That would have a broad effect. California is aiming for 100 percent of new-car sales to be electric by 2035, and some of its standards are copied by at least 17 other states.
“The impact of this will be significant,” said Shay Natarajan, a partner at Mobility Impact Partners, a private equity firm that invests in sustainable transportation.
If demand for electric vehicles flags, as it has in other countries like Germany that cut incentives, she noted, carmakers could be left with costly, underused electric-vehicle and battery factories.
“Federal funding for E.V. and battery manufacturing will be harder to access, increasing the risk of stranded capital for manufacturing projects already underway,” Ms. Natarajan said in an email.
Representatives of the fossil-fuel industry celebrated the president’s action, while environmentalists lamented what they said was a serious setback to efforts to cut greenhouse gas emissions and reduce urban air pollution caused by cars.
“This is a new day for American energy,” Mike Sommers, the president of the American Petroleum Institute, said in a statement, “and we applaud President Trump for moving swiftly to chart a new path where U.S. oil and natural gas are embraced, not restricted.”
Katherine García, a transportation expert at the Sierra Club, said: “Rolling back vehicle emission safeguards harms our health, our wallets and our climate. We will fight him at every turn of the road.”
But the end effect may not be as broad as the forceful language in Mr. Trump’s executive orders suggests.
Funds to encourage electric-vehicle sales and manufacturing were enshrined in legislation that the president cannot unilaterally repeal. Mr. Trump also cannot revoke rules that the Treasury Department and other government agencies established to determine how the money would be handed out merely with a stroke of the pen. Any attempt to short-circuit the laborious process of proposing new regulations that includes seeking comments from the public will almost surely invite credible legal challenges.
The Department of Energy has agreed to lend billions to carmakers like Rivian, which will receive $6 billion for a factory near Atlanta to produce electric sport utility vehicles. The loan agreements, some finalized in the waning days of the Biden administration, are binding contracts.
Much of the money has flowed to congressional districts in states like Georgia, Ohio, South Carolina and Tennessee where Republicans dominate local politics. Their representatives may hesitate to repeal laws that have brought their districts jobs and investment. That is a challenge for Republican leaders wrangling slim majorities in the House and Senate.
Ultimately, individuals and families will decide what cars they buy. Electric vehicles and plug-in hybrids are gaining market share not only because of subsidies, but also because they offer rapid acceleration and lower fuel costs. Cars that run on fossil fuels have been losing share, though that could change if financial incentives are removed from battery-powered cars and trucks.
The abrupt shift in political direction presents a quandary for automakers. Some may welcome promises by the president to rescind emissions and air-quality standards that force manufacturers to sell more electric cars than they might like. But elimination of federal subsidies could upset their financial planning when most are struggling to earn or increase profits.
The about-face on electric-vehicle policies adds to a climate of uncertainty and peril heightened by the president’s promise to impose 25 percent tariffs on goods from Canada and Mexico, which are major suppliers of cars and car parts to the United States.
The U.S. auto industry “will be shattered by tariffs on assembled vehicles or parts at this level,” Carl Weinberg, chief economist at High Frequency Economics, said in a note to clients Tuesday.
Some carmakers seemed to applaud the president’s actions, while others were noncommittal.
“President Trump’s clear focus on policies that support a robust and competitive manufacturing base in the United States is hugely positive,” Stellantis, which owns Dodge, Jeep, Ram, Chrysler and other brands, said in a statement.
Mary T. Barra, the chief executive of General Motors, congratulated Mr. Trump on Monday on X and said that the company “looks forward to working together on our shared goal of a strong U.S. automotive industry.”
There is no sign that Elon Musk — the chief executive of Tesla and head of what Mr. Trump is calling the Department of Government Efficiency — is using his influence to blunt the attack on electric vehicles. Tesla accounts for slightly less than half the electric cars sold in the United States, and almost all its vehicles qualify for $7,500 tax credits.
Four of the 16 cars and trucks that can be purchased with the help of that tax break are made by Tesla. G.M. is the only automaker that has more eligible models, at five. No other company has more than two qualifying vehicles.
Mr. Musk has previously said that the government should get rid of all subsidies and that Tesla would suffer less than other automakers. But analysts note that Tesla’s sales and profits would be hit hard if Mr. Trump successfully repealed or truncated the electric-vehicle tax credit, California’s clean-air waiver and other such policies.
Tesla did not respond to a request for comment.
During an appearance before Trump supporters in Washington on Monday, Mr. Musk, who is also the chief executive of SpaceX, exulted that the president had promised to send astronauts to Mars. “Can you imagine how awesome it will be to have astronauts plant the flag on another planet for the first time?” Mr. Musk said. He did not mention cars.
World
Video: A Small Election Could Change British Politics
new video loaded: A Small Election Could Change British Politics
transcript
transcript
A Small Election Could Change British Politics
Voters in the northern English district of Makerfield cast ballots on Thursday to choose their representative in Parliament, the outcome of which could lead to Prime Minister Keir Starmer’s ouster.
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Well, I don’t think there should be a leadership election. I think that the last government proved that parties that spend their whole time in leadership elections don’t go on to win the next general election.
By Alisa Shodiyev Kaff
June 18, 2026
World
From bear hugs to handshakes: How India lost its edge with Trump while Pakistan quietly gained ground
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This week, President Donald Trump and Indian Prime Minister Narendra Modi came face-to-face at the G7 summit in France, their first such encounter since February 2025. Rather than his trademark bear hug, Modi greeted Trump with a smile and handshake.
Then on Wednesday, the two held a bilateral meeting. It was a friendly chat, but one that came against a backdrop of compounding tensions.
As India works at restoring its relationship with Washington, its arch-foe Pakistan has expanded its own diplomatic profile, complicating India’s campaign against its nuclear-armed rival.
COMMERCE SECRETARY HOWARD LUTNICK MAKES QUIET TRIP TO INDIA DAYS AFTER TARIFF SETBACK
President Donald Trump looks at Pakistan’s Prime Minister Shehbaz Sharif speaking following the official signing of the first phase of the Gaza ceasefire agreement between Israel and Hamas. Shariff announced his intention to nominate Trump for the Noble Peace Prize for a second time. (Evelyn Hockstein / Reuters)
For years, India built an international case against Pakistan, projecting it as an isolated or destabilizing state. This hardline stance appeared to be working, with Modi declaring to Pakistan, “India has been successful in isolating you, and we will intensify those efforts.”
But a decade later, Pakistan is rapidly emerging as a key global player in the region and beyond.
While Modi initially tried to engage Pakistan, his government’s approach eventually hardened around the mantra that “terror and talks cannot coexist.”
In Washington, India has typically been favored, with Presidents Trump, Biden, Obama and George W. Bush all making visits during their time in office.
President Donald Trump (R) shakes hands with Indian Prime Minister Narendra Modi during a bilateral meeting at the G7 Summit on June 17, 2026 in Evian-les-Bains, France. (Anna Moneymaker/Getty Images)
Modi built a rapport with Trump during his first term in office and was one of the first world leaders invited to the White House after Trump’s inauguration. But over the past year, that relationship has come under strain as Islamabad quietly clawed its way back to credibility.
“India misjudged Trump in term two, banking on once friendly relations,” Sid Dubey, a visiting professor at Bennett University in India, told Fox News Digital. “They have yet to start recovering from that.”
PRESIDENT TRUMP, INDIA’S MODI TO TACKLE TRADE, TARIFF TENSIONS AT HIGH-STAKES MEETING
U.S. President Donald Trump and Indian Prime Minister Narendra Modi wave to the crowd at Sardar Patel Stadium in Ahmedabad, India, Monday, Feb. 24, 2020. India poured on the pageantry with a joyful, colorful welcome for President Donald Trump on Monday that kicked off a whirlwind 36-hour visit meant to reaffirm U.S.-India ties while providing enviable overseas imagery for a president in a re-election year. (AP Photo/Aijaz Rahi)
The shift first became apparent in May 2025, when President Trump announced he had secured a ceasefire between nuclear-armed India and Pakistan. The fighting had come over India-administered Kashmir and was the worst in decades.
Islamabad promptly praised Trump for ending the deadly dispute and even nominated him for a Nobel Peace Prize. New Delhi, however, rejected the claim, insisting the ceasefire was the result of direct bilateral talks with Pakistan.
The response reflected India’s long-standing sensitivity to third-party involvement in what it fiercely maintains is a bilateral dispute.
In the months that followed, frictions only deepened.
FILE — In this Jan. 11, 2013 file photo, a Pakistani Ranger in black uniform and his Indian counterpart march during a flag-off ceremony, at the joint Pakistan-India border check post of Wagah near Lahore, Pakistan. (AP Photo/K.M. Chaudary, File)
President Trump hit India with some of the steepest tariffs imposed on any major economy. Meanwhile, U.S. sanctions pressure on Russian oil rattled energy import-dependent India, while disputes over H-1B visas added further strain. Analysts say Trump’s America First agenda increasingly overshadowed the friendship Modi had cultivated during Trump’s first term.
“When Trump unfortunately said the May 2025 clash ended because of him personally, that upset India a lot, and they made that known,” Dubey said. “Then the tariffs were another slap in India’s face. Meanwhile, Pakistan took advantage, leaving India at a bit of a loss. From there, relations fell further with the Iran conflict.”
India is among the countries most indirectly affected by the strategic fallout from the Iran war, facing economic pressure and mounting energy concerns.
IRAN WAR FUELS ASIA ENERGY CRUNCH AS INDIA, JAPAN, OTHERS FEEL STRAIN
Iranian Parliament Speaker Mohammad Bagher Ghalibaf meets with chief of Defence Forces of Pakistan, Field Marshal Asim Munir, in Tehran, Iran, May 23, 2026. (Iranian Parliament Speaker Office/WANA (West Asia News Agency)/Handout via Reuters)
Last week, a U.S. strike further exacerbated tensions after three Indian seafarers became collateral damage in the conflict. They were the first and only seafarers confirmed killed as part of the U.S. blockade, sparking outrage across India.
New Delhi instantly summoned Washington’s Chargé d’Affaires Jason Meeks, expressing deep concern over the renewed attacks and arguing that its nationals were becoming casualties in a war not their own.
India also warned of the broader humanitarian, economic, and energy consequences of the conflict, which are expected to linger even as an agreement has now been reached.
U.S. Vice President JD Vance, center, walks with Pakistan’s Chief of Defence Forces and Chief of Army Staff Field Marshall Asim Munir, left, and Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar after arriving for talks with Iranian officials in Islamabad, Pakistan, Saturday, April 11, 2026. (Jacquelyn Martin/Pool via AP Photo)
All the while, Pakistan was gaining diplomatic visibility, finding itself in the unusual position of currying favor in Washington while maintaining deep ties with China, Iran and the Gulf states.
Pakistan’s prominent role in recent months highlighted how Islamabad has been more nimble in its diplomacy than India,” Council on Foreign Relations Senior Fellow Sadanand Dhume told Fox News Digital. “Additionally, Pakistan decisively outmaneuvered India’s quixotic bid to isolate Pakistan on the world stage.”
Regional dynamics have also been reshaped by the two rivals’ competing strategies. India has deepened its strategic partnership with the U.S. through alliances such as the Quad partnership with the U.S., Australia, and Japan and has expanded cooperation across South Asian states, including a burgeoning relationship with Afghanistan. Meanwhile, Pakistan’s growing regional relevance has been reflected in its strengthened ties with China, improved relations with regional partners like Bangladesh and expanded security cooperation with Gulf states.
RUBIO VISIT TO INDIA PUSHES DEEPER ENERGY TIES AS IRAN CONFLICT RATTLES GLOBAL OIL MARKETS
Additionally, Trump, who accused Pakistan of “deceit and lies” during his first term, has since repeatedly praised its leadership. In June 2025, the president invited Pakistan’s army chief Asim Munir to the White House for a high-profile lunch meeting.
Munir was the first Pakistani military chief who was not also president to be hosted by a U.S. president. He also led the war effort against India earlier that year.
In this photo released by the Inter Services Public Relations, Pakistan’s Chief of Defense Forces and Army Chief Gen. Asim Munir, center, Pakistan Naval Chief Admiral Naveed Ashraf, left, and Pakistan Air Force Chief Air Chief Marshal Zaheer Ahmed Babar attend a guard of honor ceremony at the joint military command headquarters in Rawalpindi, Pakistan, Monday, Dec. 8, 2025. (Inter Services Public Relations via AP)
Trump described Munir as his “favorite Field Marshal” and an “exceptional human being.”
Their relationship has been further reflected in trade deals and, most recently, Pakistan’s role as a principal mediator in restoring diplomacy between the U.S. and Iran.
“India tried to make Pakistan an international pariah. Instead, Pakistan has wormed its way into Trump’s good books through a combination of concrete co-operation with the U.S. and outrageous flattery of the president, leading to Trump elevating Field Marshal Asim Munir and Prime Minister Shehbaz Sharif as heroes,” Dhume said.
India, meanwhile, has maintained close ties with Israel while generally sticking to more measured messaging.
TRUMP’S FAVORITE FIELD MARSHAL: WHO IS PAKISTAN’S POWERFUL ARMY CHIEF ASIM MUNIR WITH DEEP INTEL TIES
On June 15, upon the agreement of a deal with Iran, Modi released a statement, saying, “India hopes that the implementation of this understanding will help restore peace and stability in the region and ensure the freedom of navigation and commerce.”
“Hats off to Pakistan. They worked really hard to bring this awfully disruptive war with Iran to an end,” Dubey told Fox. “India unfortunately lost out by not seeking to be a problem solver like Pakistan. It could have played its cards better as a peacemaker, given its traditionally strong relations with Tehran.”
Still, analysts caution these are rapidly evolving dynamics. There is no guarantee that Pakistan’s current moment will last, and the tide for India could still turn.
“Pakistan’s mediation role has allowed it to substantially reset its international image. It has positioned itself as a responsible international actor rather than a rogue state responsible for both nuclear proliferation and exporting Islamic terrorism. How long this lasts depends in large measure on two things: will Pakistan find a way to remain in Trump’s good books, and will it be able to change its behavior sufficiently to convince the world that it has indeed turned over a new leaf,” Dhume told Fox News Digital.
Meanwhile, India is working to regain its position and show the U.S. it is still a reliable partner.
Marco Rubio visited India last month, his first since becoming Trump’s top diplomat last year, which was widely seen as an attempt to reset ties.
Secretary of State Marco Rubio speaks as President Donald Trump looks on during a cabinet meeting in the Cabinet Room of the White House in Washington, DC, on April 30, 2025. (JIM WATSON/AFP via Getty Images)
Trump and Modi’s G7 meeting marked another significant step.
Trump praised Modi as “calm, cool and totally killer” and said he would be traveling to India “sometime in the future.” India has been pressing Trump for a visit, potentially as part of a broader meeting involving Japan and Australia.
Trump also said the United States would defend India.
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“If anybody attacks that man, we’re going to be there,” Trump said, referring to Modi. “Now, if there’s a new leader, I’m not sure about it.”
The Pakistani and Indian governments did not respond to Fox News Digital requests for comment.
World
EU of six, not 27, is needed to ‘stay relevant’ – Bruno Le Maire
Working with a coalition of six core European countries instead of 27 is the best way to reinforce Europe, former French Economy Minister Bruno Le Maire told Euronews on the sidelines of the G7 summit in Évian, France.
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His comments come as the European Union looks for ways to streamline its decision-making process and become more agile on key issues from defence to foreign policy.
“The single lesson that all the European leaders must draw from the past months, and I would say from the last two years, is that if they want to be relevant and strong, they need to be united. And they don’t need to unite with 27 member states,” he said in a Euronews interview.
“They need to give a new impetus to the European construction by building a European [project] with six core countries,” Le Maire, who was the longest-serving economy and finance minister since World War II and the shortest-serving minister for armed forces, note
Le Maire listed France, Germany, Italy, Spain, Poland, and the Netherlands — the EU’s six largest economies — as the states that should band together to discuss key issues facing the bloc, ranging from the Iran conflict and support for Ukraine to chip manufacturing on European soil and nuclear energy.
“Six countries instead of 27 countries is the best way of reinforcing Europe, of facing the threats posed by many empires around the world, and getting some concrete results,” he said.
Le Maire pointed to the pressure from the US administration against the EU, including tariffs and threats over regulatory standards, in response to Brussels’ antitrust fines and digital regulations targeting American tech giants like Google and Amazon.
“We can no longer accept being blackmailed […]. The way President Trump and the US administration are saying, ‘You should get rid of the taxation of Google, Amazon, Facebook, and Microsoft, otherwise, I will hit you with new tariffs,’ is 100% unacceptable among allies,” he said.
“If we want to resist that kind of threat, that kind of blackmail […] the six strongest European member states must stand united […]. If we are divided, you cannot resist that pressure,” he said.
“If you stand united, explaining that it will be difficult for the US to gain access to the European market if they do not respect Europe as a partner, that is the best way of getting some concrete results.”
Too much talk, too few decisions
Often held up by a principle of unanimity, Le Maire told Euronews that involving 27 countries to form a consensus on EU decision-making means “long talks and very few decisions”, while what is needed now is “strong decisions and fewer talks.”
He envisioned a structure in which the six core countries move forward on matters, and “then the 21 other member states, if they want to join, they will join,” adding, “first of all, let’s move on.”
The idea of this coalition is not new. In fact, it already exists in some shape or form.
Earlier this year, the finance ministers of Germany, France, Italy, the Netherlands, Poland and Spain launched a new coalition, dubbed the “E6”, to push for “decisive action and swift progress” in four strategic areas: defence, supply chains, the Savings and Investments Union, and strengthening the euro internationally.
“We are providing the impetus, and other countries are welcome to join us,” German Finance Minister Lars Klingbeil said at the time. The President of the European Commission, Ursula von der Leyen, endorsed this two-speed Europe concept as a way of bolstering the European economy.
In May, the E6 signed a joint letter calling for an acceleration of the Capital Markets Union (CMU) in an attempt to get a deal through a politically stagnant Brussels.
The CMU aims at creating a single, integrated market for capital across all 27 member states to service companies, investors and consumers.
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