Name: Trump to ease mileage rules in bid to curb rising car prices
Uploaded: 2025-12-02T23:33:19.209Z
Duration: 2 min 52 s
Description: Bloomberg News broke the story that Trump administration is poised to announce new fuel efficiency standards for cars in a bid to undo requirements it has assailed for driving up the cost of new cars.

Bloomberg News broke the story that Trump administration is poised to announce new fuel efficiency standards for cars in a bid to undo requirements it has assailed for driving up the cost of new cars.

Washington

The Trump administration is moving to relax fuel economy standards, aiming to address the rising cost of new vehicles, which recently surpassed $50,000 on average. Industry leaders have welcomed the elimination of fuel economy penalties, which previously required automakers to buy credits from electric vehicle companies, but tariffs continue to add significant costs.

The policy shift is intended to benefit consumers and protect auto worker jobs by making cars more affordable and maintaining factory employment. The administration has also rolled back the $7,500 electric vehicle tax credit, further reducing incentives for higher-priced electric vehicles and shifting focus toward less expensive internal combustion engine vehicles.

Trump to ease mileage rules in bid to curb rising car prices

Walk us through the logic here. So this theoretically would help when it comes to affording cars. Yeah that's the idea. You know the average cost of a new car rose above 50000 dollars the first time in September. And the Republicans have been getting a lot of heat over cost of living issues. So they're really trying to show that they're attacking affordability in the auto market. And they feel like if they can roll back fuel economy standards that will reduce a lot of the high price technology on cars and it could lead to lower prices. Well what are people in the industry saying as to how far that would actually go whether or not that would help when it comes to prices. Well the industry has been very excited that President Trump has essentially zeroed out fuel economy penalties. They no longer have to buy credits from electric vehicle companies like Tesla in order to meet stringent fuel economy standards. So they've enjoyed that. But on the other side of the ledger are the tariffs and tariffs have added billions in cost to automakers. So it's kind of a you know give and take for the auto industry. So does this benefit more of the auto industry itself or consumers. I'm not quite clear on who exactly would benefit the most. The Republicans are trying to benefit consumers who showed in the most recent elections that went the way of the Democrats that that there is unrest over the cost of living and that they need to attack that issue. They're also trying to sort of protect the jobs of auto workers who've also been very supportive of President Trump. And they feel like if they can get car prices down that will sell more cars and keep people working in the factories. Absolutely. So wrap this into President Donald Trump broader push in terms of what it when it comes to ease. You know he's derided a lot of the Biden era policies as part of an easy mandate. How does this specific news item sort of fit into that. Yeah this is another step in that direction. You recall he eliminated the seventy five hundred dollar tax credit consumers got for purchasing an electric vehicle. And now he's rolling back fuel economy standards which means you have to sell fewer electric vehicles to meet those mileage standards. So it really is a way to back off from electric vehicles which are higher priced than regular internal combustion engine vehicles. So it is a way to reduce the average price of cars. And Keith we only have about 30 seconds left. But before I let you go bring us up to speed on the current state of tariffs with the auto industry because we know there's been a ton of back and forth there. Yeah they haven't hit as hard as initially thought. They've automakers have scaled back their projections on on how big a hit it will be. But it's still significant. It's still in the billions and they're just working to not put it all on the consumer. So the companies are eating some of it themselves.

Ahead of a meeting to discuss the U.S. proposal for peace in Ukraine, Russian President Vladimir Putin dismissed European counter-proposals as 'unacceptable' and said his country was ready for war if Europe wants one.

Moscow

Ukraine Invasion

Putin says Russia is 'ready' if Europe wants war

OpenAI has declared a "code red" as Google threatens to unseat the AI industry's early leader, according to the Wall Street Journal. Technology journalist Jacob Ward joins CBS News to discuss.

California

OpenAI declares 'code red' as Google threatens its AI lead, WSJ reports

Russian President Vladimir Putin met U.S. President Donald Trump's special envoy Steve Witkoff and son-in-law Jared Kushner in the Kremlin on Tuesday (December 2) for talks on a possible way to end the deadliest European conflict since World War Two.

Putin meets Trump envoys Witkoff, Kushner for Ukraine peace talks

Secretary of Defense Pete Hegseth said during a Cabinet meeting on Tuesday that the deadly boat strikes in the region near Venezuela and Colombia have "only just begun." This comes as Republicans and Democrats in Congress question the legality of the military action.

Hegseth defends boat strikes near Venezuela during Cabinet meeting

President Vladimir Putin has hailed what his commanders told him was the full Russian capture of the city of Pokrovsk in eastern Ukraine as an important victory after a prolonged campaign, saying it would help Moscow fulfil its wider war aims.

Pokrovsk

Russia claims control of Pokrovsk

Major rescue and recovery efforts are underway across Southeast Asia after a series of severe storms battered the region displacing millions and killing more than 1,100 people.

Nuwara Eliya

Severe storms batter Southeast Asia, displacing millions

Honduras’ presidential race is too close to call, with Nasry Asfura and Salvador Nasralla nearly tied at just under 40% each as technical glitches delay official results.

Tegucigalpa

Asfura, Nasralla in tight battle for Honduras presidency

Airbus must inspect hundreds of its A320 jets for potential quality flaws in the plane's body as a total of 628 aircraft contain panels that may be too thick or too thin due to a manufacturing issue at a supplier.

Blagnac

Airbus to inspect hundreds of A320s for defective panels

U.S. President Trump warns against actions that could ‘interfere with Syria’s evolution’ amid new Israeli incursions and strikes.

Damascus

Syria demands Israel withdraw amid escalating cross-border incursions

The White House confirmed it authorized a second airstrike on an alleged Venezuelan drug boat in September, but denied it ordered everyone on board be killed, which would be considered a war crime.

U.S. authorization of second strike of Venezuelan ship questioned

Monday is World AIDS Day. It has been recognized globally since 1988, but this year, the U.S. government is not commemorating it for the first time.

U.S. not recognizing World AIDS Day this year

Operation "Swamp Sweep," a monthslong immigration crackdown centered in New Orleans, is set to begin Monday. CBS News national reporter Kati Weis has the details.

New Orleans

Immigration enforcement operation set to begin in New Orleans

Luigi Mangione, the man charged with murdering UnitedHealthcare CEO Brian Thompson, was in a New York City courtroom on Monday for a pre-trial hearing focused on what evidence the jury will see. CBS News' Anna Schecter has the details.

New York

Luigi Mangione's lawyers seek to toss evidence in state murder case

West Virginia Gov. Patrick Morrisey said Monday that Andrew Wolfe, the second National Guardsman shot in Washington, D.C., last week, has woken up from an induced coma.

National Guardsman injured in shooting has woken up from coma

Lawmakers are questioning the massive mobilization in the Caribbean as President Trump announced airlines and pilots should consider "the airspace above and surrounding Venezuela to be closed in its entirety." It comes amid new controversy over the strikes on suspected Venezuelan drug boats that has some lawmakers raising questions over whether the Pentagon committed a war crime.

Caracas

Pentagon 'may have' committed war crime amid questions over drug boats

Steve Witkoff, one of President Trump's key envoys helping negotiate a peace proposal between Russia and Ukraine, is set to meet with President Vladimir Putin in Moscow, the Kremlin says. CBS News' Ramy Inocencio reports.

Trump envoy set to meet with Putin in Moscow, Russia confirms

Russian missiles and drones continue to hit Ukrainian cities even as U.S. negotiators try to broker a deal between the two countries. Some Ukrainians have expressed anger over President Trump's original peace plan put forward last month, saying it does not guarantee their safety.

Kyiv

Ukrainians express anger over Trump peace proposal as strikes continue

Luigi Mangione, the man accused of killing UnitedHealthcare CEO Brian Thompson last December, is set to appear in court for hearings on evidence for his upcoming trial. CBS News' Katrina Kaufman reports.

Luigi Mangione headed to court on what evidence should be allowed

Thousands rallied outside President Isaac Herzog’s residence in Tel Aviv, urging him to reject a pardon request from Prime Minister Benjamin Netanyahu, who faces fraud charges. Demonstrators held signs demanding accountability and warned that approval could undermine justice in Israel.

Tel Aviv-Yafo

Protests in Tel Aviv after Netanyahu seeks pardon in fraud cases

The Ukrainian delegation met with U.S. officials in Miami on Sunday ahead of scheduled talks between the U.S. and Russian officials, including Vladimir Putin, later this week.

Miami

Rubio calls U.S.-Ukraine talks productive but says more work ahead

Israeli Prime Minister Benjamin Netanyahu submitted a formal pardon request in his long-running corruption cases to the Israeli president. Herzog says he will "sincerely consider the request."

Netanyahu asks president to grant him pardon from corruption charges

Two men and two women from the Paris region have been taken into custody in connection with the theft at the Louvre last month, prosecutors said.

Paris

Four more suspects arrested over Louvre jewelery heist

Entire areas of Sri Lanka's capital were flooded on Sunday after a powerful cyclone triggered heavy rains and mudslides across the island, with authorities reporting nearly 200 dead and dozens more missing.

Colombo

Sri Lanka reels from Cyclone Ditwah as death toll nears 200

Top Trump administration officials are meeting Ukrainian negotiators in Florida this weekend, pushing to broker an end to Russia's war in Ukraine.

Florida

Rubio and Witkoff to meet with Ukraine's negotiators in Florida

President Trump intensified his pressure campaign on Venezuela on Saturday. He posted that the airspace around the country is "closed in its entirety." It comes amid growing pressure on Venezuelan leader Nicolás Maduro to step down.

Trump declares Venezuela's airspace closed

Negotiators for Ukraine are headed to Florida for further peace talks with Trump administration officials. The visit comes amid new deadly air assaults across Ukraine.

Deadly Russian air assaults hit Ukraine amid peace talks

Approximately 24 million people across the U.S. are under winter storm alerts. Dave Malkoff and Andrew Kozak have the details on this holiday weekend's forecast and the impact.

Chicago

Major storm blasts Midwest, impacting holiday travel

Ukraine’s security services say that domestically made naval drones struck two Russian oil tankers in the Black Sea, involving vessels described as part of Russia’s “shadow fleet.”

Ukraine strikes Russian oil tankers in the Black Sea

From Rome to Berlin, from São Paulo to Istanbul: the demonstration in the Italian capital, led by Global Movement to Gaza, reflects a global protest for Gaza, with thousands of people united in solidarity and justice

Rome

Thunberg joins pro-Palestine march in Rome

US President Donald Trump has said the airspace above Venezuela is to be closed. With a US task force already in the Caribbean, land operations against suspected Venezuelan drug traffickers could soon begin.

Breakdown