The Trump administration's decision to relax Corporate Average Fuel Economy standards has ignited a fierce debate about car affordability, safety, and America's automotive future. Sen. Ted Cruz (R-TX) and Transportation Secretary Sean Duffy are leading the charge in defense of the rollback, while critics warn of environmental and economic fallout.
Cruz Promises Thousands in Savings
Taking to X on Wednesday, Cruz called the CAFE rollback a "big deal" that would slash the cost of cars and trucks by "thousands of dollars." His argument goes beyond just pricing. According to Cruz, Biden's CAFE standards forced automakers to build cars Americans didn't want or couldn't afford, and in the process, made vehicles less safe by requiring manufacturers to "replace steel with plastic."
The Texas senator is positioning this as a win-win: cheaper cars that also happen to be safer because they won't need to sacrifice structural integrity to meet fuel economy targets.
Duffy Takes Aim at Buttigieg's "Unattainable" Standards
During a White House press briefing, Duffy didn't hold back. He called the Democrat party's affordability claims "a lie" and took direct aim at Biden-era Transportation Secretary Pete Buttigieg.
"Biden and Buttigieg... used EVs and Hybrids to come up with a 62-mile-an-hour-per-gallon standard," Duffy explained, calling the figure "completely unattainable" and a major driver of rising vehicle costs.
Duffy also highlighted how the standards forced automakers to buy carbon credits, a practice that costs "billions of dollars" and represents a lucrative revenue stream for companies like Tesla Inc. (TSLA). Those costs, he argued, get passed directly to consumers in the form of higher sticker prices.
His conclusion? "Buttigieg and Biden broke the law and forced auto manufacturers to build EVs — jacking up car prices for families."
Ford CEO Welcomes the Change
Ford Motor Co. (F) CEO Jim Farley was quick to praise the rollback when President Donald Trump announced it. Farley said the relaxed standards would help Ford "invest more in affordable vehicles" while reaffirming the company's commitment to U.S.-made cars.
Not everyone is celebrating, though. California Governor Gavin Newsom (D-Calif.) slammed the decision, warning it will drive up fuel costs and "poison" the air. Newsom also argued that Trump is ceding America's leadership in EVs and clean energy to China.
The Broader Affordability Push
Cruz's criticism extends beyond fuel economy standards. He's also challenged mandatory safety features like automatic emergency braking and rear seat child occupant alerts, arguing they unnecessarily inflate vehicle prices. According to Cruz, car costs have doubled in the past decade due to "onerous government-mandated technologies and radical environmental regulations."
The Senate Committee on Commerce, Science, and Transportation, which Cruz chairs, has invited top executives from Ford, General Motors Co. (GM), Stellantis NV (STLA), and Tesla for a hearing on these issues in January.
The political lines are clearly drawn: Republicans argue regulations have made cars unaffordable, while Democrats counter that rolling back standards will harm the environment and public health while surrendering America's competitive edge in the global EV market.