WASHINGTON — President Donald Trump announced Wednesday that he is resetting federal fuel standards that were used by President Joe Biden’s administration to impose severe regulations on American car manufacturers.
The president unveiled the changes in the Oval Office, promising that the reset of the Biden-era fuel economy standards will save American families a combined $109 billion. The president said he will realign the standards with real world market conditions.
“Combined with the insane electric vehicle mandate, Biden’s burdensome regulations helped cause the price of cars to soar more than 425%, and in one case, they went up 18% in one year,” Trump said. “Today, we’re taking one more step to kill the Green New Scam.”
The president added that his administration’s action “is expected to save the typical consumer at least $1,000 off the price of a new car, and we think substantially more than that.”
Trump was flanked by Secretary of Transportation Sean Duffy as well as Republican lawmakers and the CEOs of major American carmakers Ford and Stellantis.
“Joe Biden and Pete Buttigieg illegally twisted mileage standards to create an electric vehicle mandate — jacking up car prices for American families and forcing manufacturers to produce vehicles no one wanted,” said Duffy. “I’m proud to stand with President Trump in the Oval Office today to say that those days are over. This administration understands the freedom of every American family starts with affordable cars. That’s why our new standards will make that dream more achievable by letting auto manufacturers produce the cars that fit families’ needs at a lower price.”
Trump’s move was praised by auto leaders, including Ford CEO Jim Farley, who said in a statement ahead of the announcement, “As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability. This is a win for customers and common sense.”
Farley said in the Oval Office that Trump’s move will allow Ford to “invest in affordable vehicles made in the U.S.”
“We believe that people should be able to make a choice” between gas-powered, hybrid, and electric cars, Farley added. “And we will invest more in affordable vehicles.”
Under Biden’s rules, auto manufacturers were required to increase fuel efficiency to an average of around 50 miles per gallon for vehicles by 2031. The Trump administration took immediate action to eliminate the former president’s policies of fuel efficiency, and shortly after Duffy was sworn in as Transportation secretary in January, he signed an order to roll back Biden’s fuel economy standards.
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Biden’s stringent rules, which were imposed under the 1975 Corporate Average Fuel Economy standards, worked as a “backdoor electric vehicle mandate,” according to the Trump administration. The White House argues that the reset of fuel economy standards “will realign” the Corporate Average Fuel Economy program with what Congress initially intended and will take a major burden off of car manufacturers.
Stellantis CEO Antonio Filosa said the Trump administration’s move would also give Americans more freedom when shopping for vehicles.
“We look forward to working further with [the National Highway Traffic Safety Administration] on environmentally responsible policies that also allow us to offer our customers the freedom to choose the vehicles they want at prices they can afford,” Filosa said.
A spokesperson for General Motors said in a statement on Wednesday that it supports the goals of the National Highway Traffic Safety Administration’s proposed rules as well as its “intention to better align fuel economy standards with market realities.”
“We have long advocated for one national standard that upholds customer choice and provides the auto industry long-term stability,” the spokesman said. “As we review the proposal, we remain committed to offering the best and broadest portfolio of electric and gas-powered vehicles on the market.”