Washington, DC – US President Donald Trump announced the repeal of the auto industry regulation passed by the Biden administration during a press conference in the Oval Office attended by several lawmakers, Transportation Secretary Sean Duffey, and Ford CEO Jim Farley. Trump also unveiled a new regulatory framework called “Freedom Means Affordable Cars,” asserting that it would reduce the average price of new cars by approximately $1,000.
Lowering efficiency standards and reducing pressure on companies
The rules imposed by the Biden administration mandated a significant increase in fuel efficiency standards. These standards rose by 8% for 2024 and 2025 models, and by 10% for 2026 models, compared to only a 1.5% increase during Trump’s first term.
Republicans argued that these increases would impose enormous costs on businesses and, consequently, on consumers.
Under the new amendment, the fuel efficiency requirement for cars and light vehicles will be 34.5 miles per gallon, instead of the 50.4 miles per gallon set by the Biden-Harris administration.
Trump: “We will end Biden’s burdensome rules.”
Trump said during his announcement: “We will officially end Joe Biden’s burdensome and terrible rules, which imposed costly restrictions and raised car prices insanely. They caused prices to rise by more than 25%, and forced companies to expand into electric vehicles that consumers do not want.”
Ford welcomes the decision
For his part, Ford CEO Jim Farley said, “We appreciate President Trump’s leadership in aligning fuel efficiency regulations with market realities. We can make progress in energy efficiency without raising prices for customers. This is a win for common sense.”
Economic and Security Outlook
According to the Department of Transportation, the initiative will save approximately $109 billion over five years, in addition to $1,000 off the average cost of a new car.
The National Highway Traffic Safety Administration also stated that the modifications will help save more than 1,500 lives and prevent a quarter of a million serious injuries by 2050.
