Trump’s anti-climate agenda is making it more expensive to own a car

Environmental regulations aimed at improving efficiency and combating climate change only make products more expensive and perform worse, according to President Donald Trump. He has long blamed efficiency regulation for his frustrations with things like toilets And shower heads. He began his second presidential term by saying: “create prosperity through deregulation“

But there is at least one important reason why American companies and households may end up paying more, rather than less, for the president's anti-environmental policies.

If you're looking for a car, you've probably noticed: cars are becoming more expensive. Kelley Blue Book reports that on average The price of a new car exceeded $50,000. for the first time in September.

And they're not just becoming more expensive to buy; cars are becoming more expensive to maintain. For most Americans, gasoline is the biggest energy expense, approx. $2,930 per family every year on average.

While a more efficient dishwasher, light bulb or faucet may command a higher price (especially as manufacturers adjust to new regulations), cars, appliances, solar panels and electronics can more than pay for themselves through lower lifetime operating costs. And Trump's program to suddenly roll back efficiency rules has simultaneously made it harder for many industries to do business while raising costs for ordinary Americans.

No one knows this better than the U.S. auto industry, which has been torn between competing environmental regulations for more than a decade.

President Barack Obama tightening vehicle efficiency and pollution standards. In his first term Trump weakened them. President Joe Biden restored and strengthened them. Now Trump changing course again – leaving US $1.6 trillion auto industry not sure what turn to take next.

Controlling Whiplash

In July, the Environmental Protection Agency began eliminating fundamental a legal framework that allows the agency to curb climate pollution from cars. Without it, the Environmental Protection Agency will be much less able to require automakers to produce cleaner vehicles, complicating efforts to reduce one of Largest sources of carbon dioxide emissions.

Trump's Secretary of Transportation Sean P. Duffy said this. summer statement that these steps will “lower the cost of vehicles and give Americans the opportunity to buy the cars they want.”

But in fact, this shift may have the opposite effect.
That's because when rules change every few years, automakers struggle to meet existing standards and can't plan ahead. Alliance for Automotive Innovation, trade group company representation like Ford, Toyota and Volkswagen, sent letter to the Environmental Protection Agency in September, saying that the administration's actions and cancellation of benefits for electric vehicles mean the current auto pollution rules set under Biden and running through 2027 are “simply unattainable.” The Trump administration responded cancellation of fines for violations — but the industry is already planning for a post-Trump world in which the rules could change radically again.

Since it takes years and billions of dollars to develop new cars to comply with stricter rules, automakers would prefer the rules remain unchanged one way or another. Each rule change adds time and cost to the development life cycle, which ultimately is factored into the price of the vehicle.

The rule change also irritates electric vehicle manufacturers, whose models are gaining momentum both in the US and around the world, even though the Trump administration Tax breaks for electric vehicles have ended. Trump complicates matters further by withdrawing support domestic production of batteries this will help American car companies create electric vehicles.

All of this creates a huge headache for the industry. “Especially in the last six months, I think chaos is a good word because they're getting hit from all sides,” he said. David CookSenior Associate Director of the Ohio State University Center for Automotive Research.

And all this uncertainty makes cars more expensive to buy and operate, leading to even more costly long-term consequences for human health and the environment.

How Trump's policies are costing drivers more

As the government relaxes efficiency targets, progress will stall and car buyers will be left with cars that cost more to run.

The think tank Energy Innovation found that cancellation Tailpipe standards could cost households an additional $310 billion by 2050, primarily through increased gasoline costs. Rolling back the standards would also lead to more air pollution and a shrinking job market for U.S. electric vehicle manufacturers due to reduced demand.

Even the Trump administration own analysis An analysis of the consequences of repealing EPA greenhouse gas regulations found that its actions would lead to higher gasoline prices due to greater fuel consumption by less efficient vehicles.

“Reversing these standards in particular would set America back decades,” he said. Sarah BaldwinSenior Director of Electrification at Energy Innovation.

While the Trump administration is turning the corner, other countries are rushing forward. Automakers can develop electric vehicles faster than conventional internal combustion engine cars because electric vehicles typically have fewer components and manufacturers don't have to worry about developing pollution controls to meet increasingly stringent regulations. Because electric cars are mechanically simpler, they also require less maintenance. Conventional cars, by contrast, typically take about five years to get from the drawing board to dealer lots, so gasoline-powered cars currently in development won't hit the market until 2030—when someone else is in the White House.

The US auto industry also serves other countries. Markets like Europe strictly adhere to their environmental regulations and strive to ban the sale of internal combustion vehicles at all. Meanwhile, China is making some the cheapest and most popular electric cars in the world.

That's why some U.S. automakers are looking beyond the U.S. and continuing to bet on more electric vehicles. Earlier this year, Ford announced it was developing $30,000 electric pickup truck for the US and for export, a sign that the company sees huge potential in low-cost electric vehicles despite the Trump administration's efforts to put the brakes on electric vehicles.

While car companies often complain about the costs and effort they have to expend as environmental regulations become more stringent, regulatory uncertainty remains a much bigger nuisance. “These rule changes are truly disruptive to the industry and harm our global economic competitiveness,” he said. Gregory KeoleyanCo-Director of the Center for Resilient Systems at the University of Michigan. “This is harmful not only in terms of setting us back in terms of decarbonization transportation sector, and the cost to consumers in the United States.”

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