Newsom hits back at Trump proposal to reduce fuel efficiency standards

Signage with gas prices at a Exxon Mobil gas station in Berkeley, California, U.S., on Wednesday, March 9, 2022. Photographer: David Paul Morris/Bloomberg via Getty Images

Less than an hour after President Donald Trump announced a proposal to slash fuel economy rules for auto manufacturers, California Governor Gavin Newsom issued a statement criticizing the idea as harmful to the environment and costly for Americans.

"Yesterday, President Trump called affordability a ‘con job’ from the White House. Today, he proved he meant it by proposing to gut fuel economy standards that will force Americans to spend billions more at the pump while poisoning the air in our communities," Newsom’s statement reads. "Let’s call it what it is: Donald is handing his Big Oil donors exactly what they want: weaker protections for consumers and bigger profits for polluters.

"At a moment when Trump’s policies are destroying jobs — 32,000 private sector jobs and 120,000 small business jobs cut in November alone — while working families drown in his failed tariff costs, this is cruelty disguised as policy. California will defend fuel economy standards that protect families’ budgets, our children’s lungs, and our future," Newsom stated.

What we know:

The proposal — Trump’s latest effort to roll back policies left by his predecessor, President Joe Biden — would mean automakers need to meet less stringent vehicle mileage requirements.

The National Highway Traffic Safety Administration oversees federal fuel economy rules, under the Corporate Average Fuel Economy (CAFE) standards. That policy was enacted by Congress in 1975 and dictates how many miles a vehicle must be able to drive on a single gallon of fuel, with specific standards for light-duty vehicles and medium- and heavy-duty trucks.

The standards are meant to reduce greenhouse gas emissions and help Americans save money on gas. However, critics argue the standards cost automakers too much money, and force them to make technological improvements on their products, which in turn raises the cost of buying a vehicle.

If Trump’s plan is finalized, fuel economy standards would be relaxed such that light-duty vehicles produced from now to 2031 would only have to adhere to an industry standard 34.5 miles per gallon, as opposed to the 50 miles per gallon required by the Biden-era policy.

What they're saying:

The Transportation Department said the reduced standards will save Americans a projected $1,000 on the average cost of a new vehicle, and total of $109 billion over the next five years.

"We’re making it easier for every family to afford high-quality cars," Trump said in an Oval Office press conference.

However, the president’s critics were quick to push back by arguing that a lower cost to buy a car is more than negated by the amount of fuel that car requires.

"The National Highway Traffic Safety Administration estimates the fuel economy standards Trump is gutting would have saved American drivers $23 billion in fuel costs and reduced our national fuel consumption by 70 billion gallons," a press release from Gov. Newsom’s office states. "Over the past 15 years, fuel economy improvements have delivered an average household savings of $630-$840 annually. Over the past two decades, fuel efficiency improvements, driven by standards, have put more than $9,000 back in  consumers’ pockets over the lifetime of the average car sold in the U.S. in 2024."

Trump was joined at the press conference by the CEOs of Chrysler’s parent company Stellantis, Antonioa Filosa, and of General Motors, who both expressed support for easing standards.

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