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Newsom Blasts Trump's Energy Policy, Warns China Is Winning The EV Race

MarketDash Editorial Team
4 days ago
California Governor Gavin Newsom is pulling no punches in his criticism of Trump administration energy policies, warning that the U.S. is ceding the electric vehicle and clean energy markets to China while rolling back fuel standards that protect consumers.

California Governor Gavin Newsom isn't holding back on his assessment of where the Trump administration's energy policies are taking the country. Speaking at the New York Times' DealBook Summit on Wednesday, he painted a picture of America falling behind while China sprints ahead in electric vehicles and clean energy.

An '1800s Approach' To Manufacturing

Newsom took aim at what he called Trump's "1800s approach" to manufacturing, contrasting it with China's strategic thinking. "China understands the opportunity," Newsom said, noting how the country is expanding its influence across South America and Europe.

The numbers he cited are stark: Chinese companies dominate 70% of the global EV market, and Chinese automakers are producing three times more vehicles than the U.S. They're also leading in battery production and technology infrastructure. "We are doubling down on stupid here in the United States," Newsom said bluntly.

Beyond the competitive landscape, Newsom expressed frustration that the administration's decisions are making it harder to transform the automotive sector and hurting consumer affordability in the process.

Fighting The CAFE Standards Rollback

The governor reserved particular criticism for the Trump administration's rollback of Corporate Average Fuel Economy (CAFE) standards. In Newsom's view, weakening these fuel efficiency requirements means "Americans pay more at the pump and China dominates the auto industry."

California plans to mount a vigorous defense of the standards. "We'll fight tooth and nail" to protect fuel economy requirements that "save Californians money and protect our health," Newsom declared. He accused the administration of rewarding "Big Oil campaign donors" with policies that "poison our air."

The Broader Energy Battle

This isn't the first time Newsom has sounded the alarm about America's competitive position in clean energy. He's previously criticized what he calls the administration's "reckless energy agenda" for helping China establish a commanding lead.

There are bright spots in the U.S. market. Tesla Inc. (TSLA) reported 44% revenue growth in its energy storage business during the company's third-quarter earnings call, showing real momentum in at least one segment of the clean energy economy.

Newsom has also pushed back against Trump's plans to expand offshore drilling in California, describing it as a move "overwhelmingly opposed by members of all political parties" in the state.

Safety Features Under Fire

In another broadside, Newsom criticized the Senate Committee on Commerce, Science, and Transportation, led by Senator Ted Cruz (R-TX), for challenging vehicle safety features including automatic emergency braking and rear seat child occupant reminders. Cruz argues these features are making vehicles unaffordable for average Americans.

Newsom's response dripped with sarcasm: "Republican priorities: Ensure it's easier to get into a car accident. Great work."

The committee is planning a Senate hearing next year with testimony from major automaker CEOs, including Ford Motor Co. (F) CEO Jim Farley, General Motors Co. (GM) CEO Mary Barra, Stellantis NV (STLA) CEO Antonio Filosa, and Tesla's VP of Vehicle Engineering Lars Moravy.

Back to News

Newsom Blasts Trump's Energy Policy, Warns China Is Winning The EV Race

MarketDash Editorial Team
4 days ago
California Governor Gavin Newsom is pulling no punches in his criticism of Trump administration energy policies, warning that the U.S. is ceding the electric vehicle and clean energy markets to China while rolling back fuel standards that protect consumers.

California Governor Gavin Newsom isn't holding back on his assessment of where the Trump administration's energy policies are taking the country. Speaking at the New York Times' DealBook Summit on Wednesday, he painted a picture of America falling behind while China sprints ahead in electric vehicles and clean energy.

An '1800s Approach' To Manufacturing

Newsom took aim at what he called Trump's "1800s approach" to manufacturing, contrasting it with China's strategic thinking. "China understands the opportunity," Newsom said, noting how the country is expanding its influence across South America and Europe.

The numbers he cited are stark: Chinese companies dominate 70% of the global EV market, and Chinese automakers are producing three times more vehicles than the U.S. They're also leading in battery production and technology infrastructure. "We are doubling down on stupid here in the United States," Newsom said bluntly.

Beyond the competitive landscape, Newsom expressed frustration that the administration's decisions are making it harder to transform the automotive sector and hurting consumer affordability in the process.

Fighting The CAFE Standards Rollback

The governor reserved particular criticism for the Trump administration's rollback of Corporate Average Fuel Economy (CAFE) standards. In Newsom's view, weakening these fuel efficiency requirements means "Americans pay more at the pump and China dominates the auto industry."

California plans to mount a vigorous defense of the standards. "We'll fight tooth and nail" to protect fuel economy requirements that "save Californians money and protect our health," Newsom declared. He accused the administration of rewarding "Big Oil campaign donors" with policies that "poison our air."

The Broader Energy Battle

This isn't the first time Newsom has sounded the alarm about America's competitive position in clean energy. He's previously criticized what he calls the administration's "reckless energy agenda" for helping China establish a commanding lead.

There are bright spots in the U.S. market. Tesla Inc. (TSLA) reported 44% revenue growth in its energy storage business during the company's third-quarter earnings call, showing real momentum in at least one segment of the clean energy economy.

Newsom has also pushed back against Trump's plans to expand offshore drilling in California, describing it as a move "overwhelmingly opposed by members of all political parties" in the state.

Safety Features Under Fire

In another broadside, Newsom criticized the Senate Committee on Commerce, Science, and Transportation, led by Senator Ted Cruz (R-TX), for challenging vehicle safety features including automatic emergency braking and rear seat child occupant reminders. Cruz argues these features are making vehicles unaffordable for average Americans.

Newsom's response dripped with sarcasm: "Republican priorities: Ensure it's easier to get into a car accident. Great work."

The committee is planning a Senate hearing next year with testimony from major automaker CEOs, including Ford Motor Co. (F) CEO Jim Farley, General Motors Co. (GM) CEO Mary Barra, Stellantis NV (STLA) CEO Antonio Filosa, and Tesla's VP of Vehicle Engineering Lars Moravy.