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Trump’s latest step to disincentivize electric vehicle production

White House confirms one-day tariffs exemption to Big Three automakers
  • The Trump administration is set to announce a significant rollback of federal fuel standards, which were originally designed to encourage the sale of electric vehicles.
  • The National Highway Traffic Safety Administration's proposal will reduce fuel economy requirements for vehicles from model years 2022 to 2031.
  • This decision contrasts with the Biden administration's earlier plans to increase Corporate Average Fuel Economy (CAFE) requirements to around 50 miles per gallon by 2031.
  • The heads of major US automakers, including Ford, Stellantis, and GM, will join Trump for the announcement, hailing the move as "a win for common sense."
  • The administration frames this as a measure to boost the automobile business, following previous actions such as rescinding EV tax credits and halting California's proposed ban on gas-powered vehicles.
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