The US is set to loosen its fuel economy rules, reversing another Biden-era policy that had been expected to lead to increased take-up of electric cars.
US President Donald Trump announced the proposal at the White House, where officials said the prior standards were not realistically achievable and were driving up costs for buyers.
"They were horrible what they were doing to costs – and actually making the cars much worse," Trump said.
Ford chief executive Jim Farley, a car industry leader on hand to celebrate the announcement, called the change a "victory of common sense", while environmental groups criticised it as a step backward for the industry and public health.
Transportation is the single biggest source of greenhouse gas emissions in the US, accounting for more than 28% of the total in 2022, according to the Department of Energy.
