02:09 04-12-2025

Trump administration to ease Biden-era CAFE and rethink credits, reshaping the EV push

The Trump administration is preparing a fresh pivot in U.S. auto policy. According to Reuters, officials plan to propose a significant easing of Corporate Average Fuel Economy (CAFE) standards that were set under Joe Biden. The changes would cover model years 2022–2031, sweeping up a wide range of vehicles already in showrooms and those slated for sale over the next several years.

The move appears to be about more than simply lowering the bar. Sources cited by the outlet describe an overhaul of the program itself: limiting or even scrapping credit trading between companies, and reexamining some of the bonus credits for fuel-saving technologies. For carmakers, that points to less pressure to rush electrification and more room to sell gasoline-powered models—particularly in segments where EV demand has fallen short of forecasts. It would also reset the compliance calculus that has guided many product strategies lately.

One more telling detail: the proposal is expected to be rolled out with participation from the heads of Ford and Stellantis. In effect, that would send a clear market signal. Betting on internal combustion in the U.S. could once again be the politically safer choice for the near term, and the idea of electrifying at any cost may no longer be the industry’s sole, unquestioned path—even as investments in EVs continue.