Trump Eases Fuel-Efficient Car Rules, Will They Really Make Cars Cheaper?
US President Donald Trump, in a speech broadcast around 2:30 a.m. Western Indonesian Time this morning, announced a significant relaxation of fuel efficiency regulations for new cars and pickups. The Joe Biden-era regulations, which encouraged more fuel-efficient and environmentally friendly cars, were officially "put on hold," citing the need to make cars more affordable for American families. Trump asserted that his policy was aimed at lowering car prices and reducing the regulatory burden on the automotive industry.
In the new proposal outlined by the government, the industry average fuel efficiency target is lowered from approximately 50.4 miles per gallon in 2031 to approximately 34.5 miles per gallon in the same year. This means manufacturers will no longer be forced to pursue fuel economy standards as aggressively as under the previous regulations. The government estimates that these new regulations could reduce the initial price of new cars by approximately US$1,000 per unit, although official calculations indicate that gasoline consumption and CO₂ emissions will increase significantly in the long term.
Trump delivered his speech at the White House, flanked by major automotive executives, including the CEOs of Ford and Stellantis, as well as representatives from General Motors. They welcomed the move, calling it a victory for "common sense and affordability," having complained that the old regulations were too expensive and difficult to comply with, especially when electric vehicle (EV) sales were not as strong as expected. They argued that the new standards better align with "market realities," where consumers still overwhelmingly choose conventional gasoline-powered cars.
However, there was immediate backlash from environmental groups and climate activists. They accused Trump of "defeating" one of the most significant steps taken to reduce oil use and greenhouse gas emissions in the transportation sector. The standard changes are expected to increase car fuel consumption, increase consumer spending on gasoline by hundreds of billions of dollars by 2050, and increase air pollution equivalent to millions of additional cars on the road. Several former US environmental officials also warned that the decision could leave US automakers behind in the clean vehicle technology race compared to Europe and China.
Trump's move follows a series of other policies that have already eliminated fines for manufacturers violating CAFE standards, ended tax incentives for electric car purchases, and limited the authority of states like California to set stricter emissions standards. Several states and environmental groups are expected to challenge these new regulations in court. While the market sees this policy as a positive sign for the conventional car industry and gasoline demand, it is also a negative for EV manufacturers and the clean energy transition agenda that has been pushed in the past. (asd)
Source: Newsmaker.id
