According to Reuters sources, Trump may cancel the United States Postal Service’s contract for electric postal trucks

By: Eliot Pierce

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Three Reuters sources claim that as part of a broader set of executive orders targeting electric vehicles, Donald Trump’s transition team is thinking about terminating the USPS’s contracts to electrify its delivery fleet.

Trump’s campaign pledges to reverse President Joe Biden’s efforts to decarbonize U.S. transportation in order to fight climate change—an agenda he has deemed needless and possibly detrimental to the economy—coincide with the move, which could be announced in the first few days of his administration, which starts on January 20.

As previously reported by Reuters, Trump plans to reverse Biden’s more stringent fuel-efficiency requirements and eliminate a $7,500 consumer tax credit for the purchase of electric vehicles.

Trump’s transition team is reportedly thinking about ending the postal service’s multi-billion-dollar agreements with Ford and Oshkosh Corp. for battery-powered delivery vehicles and charging stations, according to Reuters.

In response to the Reuters report, Oshkosh’s stock dropped around 5% to 105.65 per share.

Requests for comment from Oshkosh and Ford were not answered.

As part of a $430 billion climate bill in 2023, Congress gave USPS $3 billion to buy EVs and infrastructure for charging them.

It plans to acquire over 66,000 electric cars by 2028, making it one of the nation’s largest fleets of electric vehicles.

Oshkosh anticipates delivering about 45,000 electric cars, with the rest coming from conventional automakers like Ford, according to the USPS.

The first batch of 14,000 chargers is being supplied by Siemens, ChargePoint, and Blink, according to the USPS.

Terminating the contract is legally challenging since the USPS is an independent federal agency with its own governing board; nonetheless, Trump’s declared policy objectives are positioned to push the boundaries of executive authority on a range of topics, from government spending to trade.

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Requests for response from the US Postal Service were not answered.

Regarding the USPS contract, Trump’s team chose not to explicitly react.

President Trump will uphold Americans’ right to drive any kind of vehicle, impose stricter tariffs on automobiles imported from China, and preserve the American auto sector for coming generations.

Karoline Leavitt, a spokesperson for the Trump transition team, stated in a statement that no policy should be regarded as official unless it comes straight from President Trump.

Biden issued an executive order on EVs in 2021 mandating that five percent of all new light trucks and passenger automobiles be zero-emission vehicles.

In order to expedite the adoption of electric vehicles, Biden instructed several federal agencies to create regulations for new fuel and pollution requirements.

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