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Administration outlines rollbacks to auto fuel‑economy and greenhouse‑gas rules, defends tariffs and market choice

January 17, 2026 | Federal Aviation Administration (FAA), Department of Transportation (DOT), Executive, Federal


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Administration outlines rollbacks to auto fuel‑economy and greenhouse‑gas rules, defends tariffs and market choice
Secretary Duffy and trade and regulatory officials used a plant tour in Toledo to lay out a package of policy shifts they said will lower costs for car buyers and bolster domestic manufacturing.

"We're rolling back what I would argue is illegal and, and unattainable for a fuel economy standard," Secretary Duffy said, contending regulators had used electric vehicles improperly in calculating previous CAFE targets. He said the administration is moving toward a new standard "for, for this new fuel economy standard" of about 35 miles per gallon to align policy with the law and reduce vehicle costs.

Officials also described regulatory actions affecting state and federal greenhouse‐gas controls. The transcript records a speaker identified as EPA Administrator Lee Zeldin saying the administration and Congress used the Congressional Review Act to disapprove EPA waivers that had allowed California to enforce state‑level EV mandates, and that those waivers are now "dead." The same speaker described a proposed repeal of the 2009 Endangerment finding and elimination of certain off‑cycle credits that apply toward regulatory compliance for technologies such as start‑stop systems.

Trade officials defended tariffs as a tool to protect U.S. manufacturers from subsidized foreign competition. U.S. Trade Representative Jameson Greer referenced a 2018 tariff that he said prevented Chinese vehicles from entering the U.S. market and said the tariffs have supported reshoring.

In a question about recent Federal Aviation Administration (FAA) notices to airmen (NOTAMs) related to potential military activity in Central and South America, Secretary Duffy said he had not reviewed the notices and emphasized that the FAA coordinates closely across government on safety matters. "The FAA works closely with the whole of government approach," he said.

Officials gave few procedural specifics in the remarks. The statements described regulatory proposals and asserted legal and policy rationales; the transcript does not include final published rules or implementation timetables, nor did officials announce formal votes or statutory changes in the event.

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