Trump administration to block California's car emissions standards

The Car Coach, Lauren Fix, on the impact on consumers of the automakers' deal with California to reduce emissions.

The Trump administration is coming down on California for setting its own gas mileage and carbon emissions standards.

President Trump said the Environmental Protection Agency would be revoking California's waiver for its standards. Ford, Honda, BMW and Volkswagen went around the EPA by reaching an agreement with California in July.

"The Trump Administration is revoking California’s Federal Waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially SAFER," Trump tweeted Wednesday. "This will lead to more production because of this pricing and safety advantage, and also due to the fact that older, highly polluting cars, will be replaced by new, extremely environmentally friendly cars."

California's rules would require light-duty model year 2026 vehicles from the four automakers to hit a minimum of 50 miles per gallon. Trump wants the current standard of 37 miles per gallon to continue until 2026 without rising.

"There will be very little difference in emissions between the California Standard and the new U.S. Standard, but the cars will be far safer and much less expensive," Trump continued. "Many more cars will be produced under the new and uniform standard, meaning significantly more JOBS, JOBS, JOBS! Automakers should seize this opportunity because without this alternative to California, you will be out of business."

Global Automakers did not immediately denounce the move, saying it would review Trump administration plans for fuel economy standards.

"A balanced fuel economy regulation is critical for the health of the U.S. auto industry," Global Automakers said in a statement. "Throughout the rulemaking process, Global Automakers has called for a unified national standard that continues the industry’s significant progress in improving motor vehicle fuel economy, and that rewards investments in next-generation fuel-savings technologies. We look forward to seeing the subsequent rule-setting standards for model years 2021 through 2026 when they are finalized."

EPA Administrator Andrew Wheeler and Transportation Secretary Elaine Chao will make a "major policy announcement" Thursday at 8 a.m. ET.