President Donald Trump announced on Saturday that he has officially approved new fuel economy standards designed to dismantle what he described as the Biden-era electric vehicle mandate. In a series of posts on Truth Social, the president argued that previous environmental regulations had cost domestic auto manufacturers billions of dollars and pressured American consumers into purchasing vehicles they did not want. He claimed these changes would remove inefficiency from the manufacturing process, leading to lower prices for families and a resurgence of automotive jobs across states like Michigan, Ohio, Indiana, and South Carolina.
The move marks a significant reversal of the Environmental Protection Agency’s 2024 guidelines under Joe Biden, which sought to accelerate the transition to electric vehicles through stricter emission limits. Trump paired this announcement with claims that his administration is investing 100 billion dollars back into the American auto industry. He credited Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick for their roles in crafting the new framework, asserting that major companies including Ford, General Motors, and Stellantis are now more empowered to build their fleets domestically without regulatory constraints.
Industry leaders have already signaled their support for the shift toward flexibility. Ford CEO Jim Farley previously praised the effort to lower fuel standards, calling it a victory for common sense and affordability. During a recent interview on Fox & Friends, Farley noted that reducing these requirements would allow automakers to offer more affordable versions of popular models and launch new American-made vehicles at price points accessible to more buyers. This follows Trump’s earlier action last year to eliminate federal EV tax credits via legislation known as the One Big Beautiful Bill Act.
Beyond national standards, Trump continues his push against regional mandates, specifically targeting California’s aggressive climate goals. Having recently signed resolutions aimed at ending California’s restrictive diesel engine rules and its goal of banning new gas-powered cars by 2035, Trump criticized the state’s infrastructure capabilities. He argued that imposing such bans was unrealistic given California’s history of power outages and brownouts, claiming that removing those dictates prevents local officials from exercising what he termed dictatorial power over the global car industry.