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Trump Administration Rolls Back EV Policy — Promises Cheaper Cars

Buying a new car in the United States could become cheaper in the coming years — that’s the promise from the Donald Trump administration. The White House announced a review of federal vehicle fuel-efficiency standards, a move that affects rules previously used to promote electric vehicle (EV) production.

According to the administration, this change could lower new car prices by about $1,000 and save consumers around $109 billion over five years.


🔍 What’s Changing?

🛠️ Policy Shift

The initiative — called “Freedom Means Affordable Cars” — modifies the CAFE program (Corporate Average Fuel Economy), which sets average fuel-efficiency targets for automakers.

Officials say the previous standards:

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  • Went beyond what Congress authorized.
  • Acted as an indirect incentive for electric vehicles.
  • Increased costs for both manufacturers and buyers.

🔄 Rule Revisions at a Glance

ItemOld RuleNew Proposal
Fuel efficiency targetsHigher, aggressive increasesLower, gradual increases
EV credit systemUsed to help automakers complyEliminated starting 2028
Consumer price impactHigher vehicle prices–$1,000 per new car
Consumer savings (5 yrs)N/A$109 billion
Fuel economy by 2031Higher prior targets34.5 mpg (~14.7 km/L)

📌 Conversions:

  • $1,000 ≈ R$5,400
  • $109 billion ≈ R$588 billion
    (Using the same rate implied in the original article.)

⚙️ Details on Key Changes

🚫 Ending EV Credit System

One major change is the end of the fuel-efficiency credit system starting with the 2028 model year.

  • The government claims this system artificially supported EV production.
  • It argues the system distorted pricing and market incentives.
  • The credit trading mechanisms used until now will no longer be considered.

📊 Projected Savings & Price Effects

According to the National Highway Traffic Safety Administration (NHTSA):

  • $109 billion in cumulative savings over five years for U.S. drivers.
  • $1,000 average reduction in new car prices.
  • Lower prices may encourage drivers to replace older vehicles sooner.

📈 Efficiency Standard Changes (2026–2031)

Vehicle TypeThrough 202620272029–2031
Passenger Cars+0.5 %+0.35 %+0.25 %
Light Trucks+0.5 %+0.7 %+0.25 %

By 2031, the national fleet is expected to reach 34.5 miles per gallon (≈14.7 km/L).


🚗 Road Safety Argument

The government also ties lower prices to improved road safety:

  • Newer vehicles often have advanced safety tech.
  • The NHTSA estimates:
    • 1,500+ lives saved by 2050
    • ~250,000 serious injuries avoided

NHTSA Administrator Jonathan Morrison says making cars more affordable is an indirect way to make roads safer.


📣 Next Steps & Public Input

  • The proposal will appear in the Federal Register.
  • A 45-day public comment period begins upon publication.
  • A public hearing will be scheduled (date TBD).
  • The final rule will reflect comments and feedback received.

📌 In Context

The administration says this is one of the biggest deregulation actions in the U.S. auto sector during Trump’s current presidency, aimed at making vehicles more affordable and less regulatory-driven.