President Donald Trump on Wednesday announced that Joe Biden will roll back fuel economy standards, arguing that it will lower car prices in the United States. However, critics warned that this would worsen climate change … Drivers will pay more to refuel.
Trump was joined in the Oval Office by the CEOs of Ford and Stellantis, as well as a GM official, to announce the move, demonstrating the support of the “Big Three” automakers.
“My administration is taking historic steps to reduce costs for American consumers. “Protecting American auto jobs and making it affordable for everyone to buy a car,” the president declared.
“Today is a victory for common sense and affordability,” said Ford CEO Jim Farley.
Environmentalists were quick to counterattack, claiming that the move stood out even among Trump’s many anti-environmental measures because of its massive impact on the car-dependent United States.
“Trump demolishes the most important action any country has ever taken.” To combat the use of oil and pollution that causes global warming “Helping consumers save money at gas stations,” Dan Baker, an activist at the Center for Biological Diversity, told AFP. “This is a great measure,” he added.
The case revolves around Corporate Average Fuel Economy (CAFE) standards, which were created in 1975 in response to the Arab oil embargo, and which require vehicles to achieve the highest possible miles per gallon.
The full extent of the reduction was not immediately clear.
However, the Trump administration has repeatedly stated its opposition to efficiency increases enacted during the Joe Biden administration, which have increased It targets between 8% and 10%, with the goal of exceeding 80 km/L by 2031.
Trump’s Department of Transportation said Biden officials incorrectly looked at electric and hybrid vehicles, saying the standards would be out of reach for gasoline cars and would effectively lead to a change in the market.
Becker called this argument “ridiculous” because… That would force automakers to ignore The presence of advanced technology.
Trump’s battle for electric cars
Trump strongly criticized what he called the “mandate” for electric cars, an issue that put him at odds with his billionaire ally Elon Musk, CEO of Tesla, which still has the largest share of the electric car market in the United States.
Republicans in Congress eliminated tax breaks Clean energy in major tax and spending bill, We focused on California’s ability to set limits on its vehicle emissions.
Throughout 2025, GM and other U.S. automakers will reduce or delay capacity at new electric vehicle plants.
But it is not yet clear whether the savings from the reduction The investment in electric vehicles will be passed on to consumers.
While the move away from electric vehicles allows automakers to delay or forego billions of dollars in new investment, some of the money is being directed toward new initiatives to increase U.S. auto manufacturing capacity in light of Trump’s tariffs.
“Meeting high fuel economy standards has been a challenge for the auto industry and has driven up the cost of vehicles,” Cox Automotive analyst Charlie Chesbrough told AFP.
“However, consumers prefer fuel-efficient cars. This year, conventional hybrid cars doubled their numbers compared to last year. While gasoline-powered vehicles remain practically unchanged.”
“Since most consumers do not have available transportation alternatives, people fear rising gasoline prices. Good fuel mileage is one way to mitigate this risk.”
Gina McCarthy, a former high-ranking official during the Biden and Barack Obama administrations, said so This measure would harm the automobile industry By slowing their transition to electric vehicles and exacerbating climate change.
“The rest of the world will continue to innovate and create cleaner cars that people want to buy and drive, while the rest of us are forced to stay in our old cars, paying more for gas and generating more emissions.”