Donald Trump announced a major shift in emission policies for the U.S. automotive sector. The White House defined the move as a full “reset” of the rules. Official estimates say the change could save consumers about 109 billion dollars overall. The administration claims that regulations introduced under President Biden helped push the average price of new vehicles up by around 1,000 dollars per car.
Trump resets U.S. emission rules with major impact on car industry
The revision focuses on the CAFE standards in force since 1975, which set fuel economy and efficiency targets for automakers’ fleets. Trump already revised these rules during his first term, when he rolled back several measures introduced under the Obama administration. He now plans another intervention aimed at making the thresholds less restrictive.
Major U.S. automakers welcomed the decision. Ford CEO Jim Farley called the move a necessary adjustment to real market conditions. He said emissions can fall without limiting consumer choice or driving up vehicle prices. In his view, the decision benefits both customers and common sense.
Stellantis also supported the new approach through CEO Antonio Filosa. He said the revised direction better reflects the global competitive landscape and creates opportunities to strengthen the domestic auto industry. Filosa stressed the importance of environmental policies that protect both consumer choice and price sustainability.
General Motors did not comment directly on the rule changes but confirmed its commitment to offering the widest possible product range. The company plans to continue developing both electric vehicles and traditional powertrains in parallel.
Criticism followed as well. Gina McCarthy, former climate adviser under both Biden and Obama, strongly opposed the Trump administration’s decision. She warned that rolling back emission rules could harm both the environment and the U.S. auto industry in the medium to long term. She also said the policy shows little regard for public health and the climate crisis.
The revision of emission standards fits into a broader policy shift launched after Trump returned to the White House last January. In recent months, the president has reduced several incentives that supported electric vehicle adoption. This move marks a clear break from the energy transition strategy promoted by the previous administration.
