Donald Trump has started his second presidencyIn the first 24 hours of his second presidency, Donald Trump has signed a raft of executive orders which could have far-reaching implications for the nation’s - and international - materials handling sector.
Most notable among these is Trump’s immediate action on climate change legislation including revoking Biden’s 2021 executive order which set a goal of 50% new vehicle sales in the US to be electric by 2030. He has done this to end what he refers to as the “electric vehicle mandate”.
Declaring an “energy emergency”, Trump has also promised “to unleash America’s affordable and reliable energy and natural resources” and has initiated the action needed to withdraw the US from the Paris Climate Agreement.
He has ordered all government agencies to immediately suspend spending under the two government acts which create subsidies for the clean hydrogen sector - the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA); and has ordered policies, processes and programs created under the act be reviewed.
What this will mean for US equipment manufactures and users who have invested heavily in EV infrastructure remains unclear. It is also unclear what this will mean for the aspirations of those who are seeking government financial assistance or support to introduce or expand fleets of electric materials handling vehicles.
What is yet to be seen is what tariffs Trump will impose on imports into the US - other than Mexico and Canada which will pay a 25% tariff from 1 February - though he again has been clear tariffs will be imposed.
We do know there will be more tariffs. Trump has suggested a number of figures on tariffs for imports from other countries, including a possible 60% tariff on Chinese goods.
He also issued an order on his first day in office directing federal agencies to investigate trade deficits and unfair trade practices and has also announced the establishment of the new External Revenue Service which will collect revenue and tariffs from other countries.
Additionally, Trump has called for an investigation into the industrial and manufacturing base in the US to understand and initiate the changes needed for import adjustment, as he pushes for a revival in US manufacturing.
The global materials handling sector, like so many others, now waits to see what further actions, changes, tariffs and impacts a second Trump presidency holds.