The company estimated that duties on imported cars and car parts would cost it $2 billion this year.
The agency’s administrator said in a podcast that the move would be “the largest deregulatory action in the history of America.”
Subsidies, hydroelectricity and a manufacturing powerhouse neighbor are moving the cars into Nepal faster than almost anywhere else.
A joint statement promised new efforts to cut emissions at a time when China is positioning itself as the world’s one-stop shop for clean energy technologies.
Shares in Tesla were down in premarket trading as the carmaker lays out the risks from President Trump’s tariffs and his scrapping of tax credits.
Elon Musk has said that robotaxis are the company’s future, but most revenue still comes from cars.
According to two people familiar with the draft, it would eliminate the bedrock scientific finding that greenhouse-gas emissions threaten human life by dangerously warming the planet.
China wants to dominate the market for the cars of the future, and it has set its sights on Brazil’s giant auto market.
General Motors was the second auto company this week, after Stellantis, to show the toll that President Trump’s trade policies are taking on the industry.
The Chinese government is taking steps to rein in what it calls “involution,” or excessive competition that is hurting local companies and fueling the country’s deflationary spiral.