President Donald Trump announced a major change on Wednesday afternoon. He officially ended the federal fuel standards that were made much stricter under the Biden administration. This reset of the Corporate Average Fuel Economy, or CAFE, standards is being called a move that will save American families a total of $109 billion, according to the White House.
The reaction from major car makers is pretty surprising. According to Fox Business, CEOs from Ford and Stellantis, along with a plant manager from General Motors, were actually at the Oval Office for the announcement on Wednesday afternoon.
Ford CEO Jim Farley quickly offered support. He said, “As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities.” Stellantis CEO Antonio Filosa agreed, noting the company looks forward to working with the administration to allow customers the freedom to choose the vehicles they want at prices they can afford.
Auto industry leaders are backing Trump’s decision on fuel standards
“We’re officially terminating Joe Biden’s ridiculously burdensome, horrible, actually, CAFE standards that imposed expensive restrictions and all sorts of problems, gave all sorts of problems, to automakers,” Trump said. He argues that these rules, combined with the push for electric vehicles, have caused car prices to jump more than 25%.
In one case, prices went up 18% in a single year. The White House said that the Biden-era rules would have raised the average cost of a new car by nearly $1,000 compared to these new standards.
GM also commented before the event. They said they support the goals of the proposed CAFE rule and its plan to better match fuel economy standards with market realities. They added that they have long pushed for one national standard that supports customer choice and gives the auto industry long-term stability.
CAFE standards were first created in 1975 as government rules setting the average fuel efficiency for a car maker’s entire fleet. The Biden administration had tightened those rules. Biden’s plan increased efficiency requirements by 8% for 2024 and 2025 model years, and then 10% for 2026. This was much higher than the 1.5% increase finalized under Trump’s first term. The debate over vehicle safety continues, with some robotaxi companies claiming superior safety records.
For the president, this move is about more than just fuel economy. He views the push for electric vehicles as part of what he calls the “greatest scam in American history, the Green New Scam.” He made it clear that while people want alternatives like electric cars, they still overwhelmingly want gasoline cars. Trump’s use of executive power has raised eyebrows recently, especially after his intervention in a major fraud case.
This change is part of a larger pattern of actions targeting environmental regulations. Back in June, President Trump signed a resolution that effectively ended California’s plan to stop the sale of gasoline-only vehicles by 2035.
Published: Dec 4, 2025 04:45 pm