On December 3, Trump, surrounded by executives of the largest car companies, announced that fuel regulation standards for new vehicles would be greatly deregulated.
“We’re officially terminating Joe Biden’s ridiculously burdensome, horrible, actually, CAFE standards that impose expensive restrictions,” Trump said, referring to the federal Corporate Average Fuel Economy rules, often called CAFE standards. “And all sorts of problems, all sorts of problems for automakers.”
NPR
CAFE standards required new vehicles to become more fuel efficient over time. Car producers that violate such standards had to pay a fine or purchase credits from more efficient automakers, such as Tesla and other automakers that emphasize electric vehicles. Ironically, this Trump move hurts Elon Musk, with whom he now has an ambivalent relationship, after a fiery falling out in summer, that saw Musk accuse Trump of being in the Epstein files (he was correct).
Before this action, Trump already removed fines associated with CAFE standards. Whereas former President Joe Biden demanded a 2% increase in fuel economy standards annually, Trump reverted this demand to .5% per year.
Contrary to Trump’s claims, CAFE standards saved average American households $630 to $840 annually. These savings were not just from a reduced consumption of oil. Poor fuel standards caused “premature mortality, acute bronchitis, respiratory emergency room visits, and work-loss days;” CAFE standards enabled Americans to work more, and enjoy healthier, longer lives, as they are not exposed to dangerous pollutants such as carbon monoxide.
Oil and gas PACs provided $11,089,723 to Republicans during the 2024 election cycle.

