In one of the single largest deregulatory actions in U.S. history, the Donald Trump administration officially terminated the 2009 “endangerment finding” on Thursday, effectively dismantling the legal foundation for federal climate regulations.
The move immediately eliminates greenhouse gas (GHG) emission standards for cars and trucks, signaling a decisive end to the government-led push for a mandatory transition to electric vehicles (EVs).
Blow To The ‘EV Mandate’
The repeal of the landmark scientific finding—which previously classified CO₂ as a threat to public health—removes the Environmental Protection Agency‘s (EPA) authority to enforce tailpipe standards that favored electric over internal combustion engines.
President Trump characterized the original policy as a “disastrous Obama-era policy” that “severely damaged the American auto industry and drove up prices for American consumers,” as per a Reuters report.
The move is a positive for Detroit-based legacy automakers like Ford Motor Co. (NYSE:F) and General Motors Co. (NYSE:GM).
For years, Tesla has relied on selling billions of dollars in regulatory credits to legacy automakers who couldn’t meet emissions targets.
With those standards gone, that lucrative “wealth transfer” disappears. Analysts estimate this rollback could wipe out margin revenue for Tesla, as competitors no longer need to pay the EV giant to stay compliant.
Relief For Logistics And Heavy Trucking
Conversely, the administration estimates an average cost savings of over $2,400 per vehicle for traditional manufacturers. This provides an immediate competitive advantage to Ford and General Motors, who can now pivot capital away from high-cost EV mandates and back into their high-margin, gas-powered SUV and truck lineups.
The policy shift extends deep into the freight sector. “The endangerment finding has been the source of 16 years of consumer choice restrictions and trillions of dollars in hidden costs,” stated EPA Administrator Lee Zeldin.
By removing GHG requirements for Class 8 trucks, the administration aims to lower costs for commercial carriers and heavy-duty manufacturers like Caterpillar Inc. (NYSE:CAT) and Cummins Inc. (NYSE:CMI).
The End Of ‘Climate Participation Trophies’
A specific target of the rollback is the automatic start-stop ignition feature. Zeldin announced the end of federal credits for the technology, which he dubbed the “Obama switch.”
“There will be no more climate participation trophies awarded to manufacturers for making American cars die at every red light,” Zeldin said. “It’s over, done, finished.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Evan El-Amin on Shutterstock.com
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