Former President Donald Trump announced that he has approved new fuel economy standards intended to discontinue the electric vehicle (EV) mandates implemented during the Biden administration. Speaking on Saturday, the former president criticized the previous administration’s policies, asserting that they cost the auto industry billions of dollars and forced Americans into vehicles they did not desire. He claimed that the newly established standards would eliminate wasteful spending and significantly lower costs for consumers.
Economic Benefits and Manufacturing Support
According to Trump, the new standards are set to revitalize American car manufacturing by removing excessive regulatory burdens. He stated that this change would lead to lower prices, offering savings of thousands of dollars for families purchasing new, safe vehicles. Trump highlighted that major manufacturers, including General Motors, Ford, and Stellantis, have expressed interest in building operations within the United States. Furthermore, he announced that his administration plans to invest $100 billion in American automobiles, expecting a return of jobs to key states such as Michigan, Ohio, Indiana, and South Carolina.
The former president also addressed regulatory actions taken in the past, noting that his administration previously ended the Biden-era EV tax credits through the One Big Beautiful Bill Act. Additionally, in June, Trump signed three congressional resolutions that effectively ended California’s restrictive requirements for diesel engines and mandates concerning the sale of electric vehicles, celebrating the move as a permanent end to the state’s mandates.
Regulatory Context and Industry Reaction
The regulatory landscape was significantly impacted by actions from the previous administration. In 2024, the Environmental Protection Agency (EPA), under Joe Biden, issued stricter fuel emissions standards that required automakers to produce a greater number of electric vehicles in the coming years. The new standards announced by Trump represent a shift away from these previous mandates.
Industry leaders have responded positively to the changes. For instance, Ford CEO Jim Farley praised Trump’s prior plan to lower fuel standards, calling it a “victory for affordability and common sense.” Speaking to “Fox & Friends” in December, Farley stated that the rule change would enable the company to offer greater affordability across popular models and introduce new, American-built vehicles.
Trump criticized the previous federal government for granting what he described as “dictatorial powers” to control the entire national auto industry. He specifically criticized California’s comprehensive plan, arguing that the state’s attempt to mandate a 100% ban on all new gasoline-powered cars in a short period was impractical, especially given potential power supply issues in the state.
