The Trump administration continued its long-running campaign to undo eco-friendly legislation enacted under the Biden administration. This time, it struck at the heart of a move meant to incentivize automakers to build out electric vehicle offerings.
What's happening?
Yahoo Finance reported on President Trump eliminating the CAFE (Corporate Average Fuel Economy) rules, which he branded as "ridiculous" and an "EV Mandate."
This adjustment significantly rolls back the stricter guidelines set during the Biden era, reducing the target for average fuel economy from 50.4 miles per gallon to 34.5 miles per gallon by 2031.
Trump justified the move by saying it would facilitate savings of at least $1,000 per vehicle for consumers. The decision was applauded by some automotive leaders like Ford CEO Jim Farley.
"Today is a victory for common sense and affordability," Farley said at the event. Meanwhile, public advocacy groups pushed back on that notion.
"The previous fuel economy standards would have saved Americans $23 billion in fuel costs and reduced our national fuel consumption by 70 billion gallons," asserted Will Anderson, zero-emission vehicles policy advocate at Public Citizen, to Yahoo Finance.
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Why is Trump's rollback of standards important?
This latest shift by Trump raises concerns about the future of EV adoption. It backs previous moves by Trump, like ending fuel economy penalties for automakers, which enabled EV automakers like Tesla to make millions selling emission credits.
On the consumer side, the Trump administration is also phasing out EV incentives that made the cars more affordable. Overall, these moves can detract from the potential benefits of more EVs on the road.
Researchers have shown that EVs, despite their flaws like mining, are significantly better for the planet than gas-powered vehicles. More EVs mean a dramatic reduction in tailpipe pollution, quieter roads, and consumer benefits like lower fuel and maintenance costs.
It's also unclear if these moves will really benefit consumers as Trump promises, or merely benefit those in the dirty energy business, as Anderson claimed.
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"Don't be fooled by the promise of lower auto prices," a Yahoo commenter advised as they cited similar Reagan-era rhetoric around restricting Japanese cars. "The consumer will get the short end of the stick - again."
What's being done about Trump's anti-EV moves?
Ultimately, there is no rule against car companies exceeding the new minimum standards. Consumers are still showing quite a bit of interest in electrified options, including EVs and plug-in hybrids. Automakers will certainly want to meet that demand if it makes business sense.
Along those lines, the proposition for consumers, including more convenient public charging options, higher battery range, and more compelling EV options, continues to grow. The more glowing testimonials by EV owners can also lead to more open-minded views of them.
No matter how much Trump rails against EVs, if enough consumers demand and purchase them, he could ultimately look like an old man yelling at the cloud on this issue.
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