President Trump, speaking at the White House on December 3, 2025, announced the termination of President Biden’s fuel economy (CAFE) standards and related electric vehicle mandates. He argued these rules were “burdensome” and “ridiculously expensive,” blaming them for driving up car prices by more than 25% and forcing automakers into costly technologies and carbon credit trading. Trump said his new rules will cancel EPA tailpipe emissions standards, revoke California’s stricter waiver, and restore automakers’ ability to build more gasoline-powered vehicles alongside hybrids and EVs, with the administration estimating at least $1,000 in savings per new vehicle for consumers.
Transportation Secretary Shan Duffy and leaders from Ford, Stellantis, and General Motors backed the policy shift during the event, saying it aligns regulations with actual consumer demand and will support more investment and production in the U.S. They highlighted multibillion-dollar commitments to expand American plants, create thousands of jobs, and build a wider range of affordable vehicles, including very small, fuel-efficient cars that Trump said he has now authorized for U.S. production. Several lawmakers and auto dealers also praised the repeal, emphasizing consumer choice, lower prices, and the ability of small businesses to benefit from tax provisions such as full expensing and interest deductibility on vehicle loans.
Beyond auto policy, Trump used the announcement to promote his broader economic agenda and address other issues raised by reporters. He credited tariffs with driving trillions of dollars in investment, claimed sharp increases in U.S. auto production, and said inflation and gasoline prices are now falling. In a wide-ranging Q&A, he commented on Ukraine peace efforts, drug interdiction at sea, Venezuela, investigations by Special Counsel Jack Smith, and immigration, including strongly critical remarks about Somali immigrants and Minnesota politics. He framed the rollback of CAFE and EV rules as part of a larger “affordability” and “jobs” push that he says distinguishes his administration from Biden’s policies.
Sources : WH.gov , Midtiwn Tribune news