President Trump has launched a direct attack on federal emissions standards, arguing that gasoline vehicles are a better choice than electric ones. His reversal of Biden era fuel economy rules has gained immediate support from major automakers, reshaping the trajectory of the U.S. automotive sector.
How trump and electric cars collide with the new White House policy
Gasoline cars over electric vehicles, Donald Trump has no doubts. “We are permanently ending Biden’s horrible and ridiculous auto emissions standards that caused major problems for the automotive industry,” he declared triumphantly from the White House. At his side stood two global auto giants, Ford CEO Jim Farley and Stellantis CEO Antonio Filosa, both openly praising the President’s move.
“It is a great day for Stellantis,” Filosa said, “because this is when the rules finally align with real market demand.” The same argument had already been voiced by John Elkann in Turin’s Mirafiori facility, stressing that the real demand is what consumers, the actual buyers, want.
The CAFE rules Trump rejects
What exactly is Trump referring to when he talks about “horrible and ridiculous standards”? CAFE is the federal framework that governs fuel economy requirements for motor vehicles. The term stands for Corporate Average Fuel Economy, which measures the average fuel efficiency of a manufacturer’s fleet sold in the United States.
CAFE rules set distinct efficiency targets for passenger cars and for SUVs or pickup trucks. Automakers that fail to meet these targets face financial penalties. The law, introduced in the 1970s after the oil crises, aims to reduce overall fuel consumption, cut greenhouse gas emissions, and stimulate technological innovation across the industry.
What Trump has rolled back
Under the Biden administration, NHTSA, the federal vehicle safety and fuel economy regulator, planned to raise average fuel economy requirements to about 50.4 miles per gallon, roughly 21.4 kilometers per liter, by 2031.
The agency estimated that Biden’s June 2024 rule for cars and light trucks would have cut gasoline use by 64 billion gallons and reduced emissions by 659 million tons. It was part of a broader strategy to accelerate electric vehicle adoption, targeting a 50 percent EV share of new car sales by 2030.
Under Trump’s new framework, which has already eliminated incentives for electric vehicle purchases, the expected average instead drops to 34.5 miles per gallon by 2031.
Trump and electric cars
“Now we are protecting the workers of this sector and making cars more affordable for every family,” President Trump said, arguing that EV incentives and emissions limits had driven vehicle prices higher. “My administration is taking historic action to lower costs for American consumers, protect auto industry jobs, and make car ownership far more accessible for millions of American families.”
Stellantis and Ford praise the reversal
From the White House, the CEOs of Ford and Stellantis offered full support for Trump’s policy shift. Stellantis immediately announced a 13 billion dollar investment over the next four years, increasing production of Jeep, Ram, Dodge, and Chrysler models.
Filosa projected a 50 percent increase in output and the creation of 5,000 new jobs tied to the company’s strategy. He stressed that Stellantis is ready to invest wherever clear rules allow predictable development plans. The company has already paid 190.7 million dollars in civil penalties for failing to meet fuel economy requirements in 2019 and 2020, after paying nearly 400 million dollars in penalties from 2016 to 2019.
