Trump Terminates Biden-Era Fuel Economy Standards, Says Move Will Cut New Car Prices by $1,000

President Donald Trump has trashed federal standards from the Biden administration that he and the automakers say have driven up the price of new vehicles.

He said the new Corporate Average Fuel Economy change should save consumers about $1,000 on the price of a new vehicle. The change aims to bolster domestic auto manufacturing in the Rust Belt after years of losing auto jobs to overseas plants.

Automakers have promised to invest billions of dollars in new auto manufacturing plants nationwide, including in

Big Three Automaker Stellantis, which owns Jeep, Chrysler, and Ram, has said it will invest $13 billion in Midwest auto factories in Indiana, Ohio, and Michigan.

Ford says it will invest $5 billion in Kentucky and Michigan factories.

Former President Joe Biden enacted the auto mileage standards to encourage consumers to buy electric vehicles.

WOW: POTUS resetting (CAFE) standards is expected to save the typical consumer at LEAST $1000 off the price of a new car. 🔥 pic.twitter.com/apTEGhFs5s
— Townhall.com (@townhallcom) December 3, 2025

🚨POTUS is ENDING Joe Biden's ridiculous (Corporate Average Fuel Economy) Mandates to make Cars AFFORDABLE!

"We're officially TERMINATING Joe Biden's ridiculously expensive, burdenson, horrible actually, (CAFE) standards that imposed restrictions and all sorts of problems to… pic.twitter.com/986YoYBaAE
— Townhall.com (@townhallcom) December 3, 2025

🚨 LMFAO! The entire Oval Office just BURST into laughter 🤣

PRESIDENT TRUMP: "Ford has announced a $5B investment in Kentucky and Michigan. *Turns around* Is that correct?"

"That's a lot, $5 billion. You can do more!" 😂🔥

Always negotiating more! pic.twitter.com/ZSm3J81mDZ
— Eric Daugherty (@EricLDaugh) December 3, 2025

It is part of Trump admin's "Freedom Means Affordable Cars” campaign. @SecDuffy estimates that more lenient CAFE standards will save the American people $109 billion over the next five years and $1,000 on the average cost of a new vehicle.

Ford CEO Jim Farley welcomed the change.

FORD CEO: "Today is a victory of COMMON SENSE and AFFORDABILITY!" 👏

"This allows us to INVEST in AFFORDABLE vehicles, MADE in the U.S. which we will take the lead on and will allow us to make vehicles more affordable. Thank you for making this step for all of you." pic.twitter.com/I2CyBNIBTQ
— Townhall.com (@townhallcom) December 3, 2025

It is part of Trump admin's "Freedom Means Affordable Cars” campaign. @SecDuffy estimates that more lenient CAFE standards will save the American people $109 billion over the next five years and $1,000 on the average cost of a new vehicle. pic.twitter.com/mYBehhXqSa
— Philip Melanchthon Wegmann (@PhilipWegmann) December 3, 2025

The change follows Trump's aim to make life more affordable for Americans.

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