The Trump administration is poised to unveil new fuel efficiency standards in a bid to undo requirements it has assailed for driving up the cost of new cars, according to people familiar with the matter.
The White House declined to comment, and the Transportation Department did not immediately respond to requests for comment.
Details of the proposed requirements weren’t immediately clear. However, they are expected to be less stringent than those finalized under former President
The move is the latest in President
Some critics say regulatory mandates have contributed to higher new-vehicle prices, which in September
Car prices have also been rising as domestic automakers increasingly prioritize high-end, feature-laden and electric models over lower-margin, entry-level cars. Tariffs enacted by Trump have also raised automaker costs by billions of dollars.
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The administration has long derided strict fuel-economy rules as regulatory overreach. Framing the issue as a matter of affordability — that new technology to increase mileage and reduce emissions is adding unnecessary costs — represents an attempt to address the cost of living, which has strained Americans’ budgets and caused widespread dissatisfaction with the president’s stewardship of the economy.
Trump has been seeking to calm fears over inflation as his own trade policies add costs to products as diverse as cars, avocados and children’s toys. Democrats won sweeping victories in off-year elections last month, portending risks for Trump’s Republicans in next year’s midterm contests that will determine control of Congress.
“We’re bringing back the automobile business,” Trump said during a cabinet meeting Tuesday. “We’re bringing it all back. I think we’ll be bigger than we’ve ever been in the auto business.”
Trump also reiterated that despite his fondness for electric cars — and his belief that hybrid models “really are working really well” — it’s important to ensure consumers can buy the automobiles they want.
“I terminated the insane electric vehicle mandate and, look, some people that make electric cars weren’t happy with that,” Trump said. “But we have to do that, because you have to have a choice.”
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Yet easing fuel-economy requirements is unlikely to swiftly lead to lower prices for consumers. Carmakers plan their lineups years in advance, meaning changes stemming from policy shifts take time to appear in showrooms. Wall Street has also applauded automakers for selling cars at higher average transaction prices.
Trump ordered the elimination of subsidies and other measures boosting electric vehicles during his first day back in the White House in January. His administration and the Republican-controlled Congress have heeded the directive by moving to ease tailpipe emissions standards, eliminate federal tax credits for EV purchasers and unwind California’s ability to set its own emissions limits.
At Trump’s request, Transportation Secretary
The National Highway Traffic Safety Administration in June laid out its legal rationale for replacing the Biden-era rules. It announced that standards finalized last year improperly considered alternative fuel vehicles such as battery-electric cars when determining future fleet requirements.
Those rules would have required automakers to achieve an average of about 50 miles per gallon across their 2031 model-year vehicles.
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