Trump says he approved fuel economy rules ending Biden EV mandate

• Trump stated the new standards will save families 'thousands' on new vehicles by reducing manufacturing costs
• The policy reverses the previous administration's EV-focused fuel economy requirements
• The announcement marks a significant shift in U.S. automotive policy away from electric vehicle mandates

SUMMARY

President Donald Trump announced on Saturday, September 26, 2026, that he has approved new fuel economy standards that eliminate the Biden administration's electric vehicle (EV) mandate. Trump made the announcement via his Truth Social platform.

Key Details:

Trump stated the new standards will reduce manufacturing costs for cars built in America, promising "LOWER PRICES" that could save families thousands of dollars on new vehicles. The President characterized the vehicles as "beautiful and safe."

Market Implications:

This policy reversal marks a significant shift in U.S. automotive regulation, moving away from the previous administration's push toward electrification. The change could have substantial impacts on:

• Automakers' strategic planning: Companies that invested heavily in EV production under Biden-era mandates may need to reassess their product mix and capital allocation
• EV sector: Manufacturers focused on electric vehicles could face reduced regulatory support and potentially slower adoption rates
• Traditional automotive sector: Companies with diverse powertrains, including internal combustion engines, may benefit from increased flexibility
• Supply chain: Reduced EV mandates could affect suppliers of batteries, charging infrastructure, and EV-specific components

The policy change reflects the Trump administration's preference for market-driven rather than mandate-driven automotive technology adoption. The announcement provides limited technical details about the specific fuel economy targets or implementation timeline.

This development follows broader automotive industry uncertainty around emission standards and electrification targets, potentially affecting investment decisions across the sector.