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Carmakers May Regret What They Wished for on Fuel Economy Rules (1)

April 3, 2018, 12:20 PMUpdated: April 3, 2018, 7:29 PM

The titans of Detroit’s auto industry met with President Donald Trump four days after he took office and warned that jobs could be lost if the fuel efficiency standards enacted by his predecessor weren’t made more flexible.

On April 2, the Trump administration responded by agreeing to revise the Obama administration standards—but in a way that may backfire on the automakers.

In announcing the decision, Environmental Protection Agency Administrator Scott Pruitt included a tacit threat that the federal government might no longer go along with California’s policies to boost fuel efficiency. That could lead to standards that vary state-by-state, greatly ...