Trump plans to roll back fuel efficiency rules for cars

President Donald Trump said his administration would "reset" fuel efficiency standards for passenger cars in an effort to put a lid rising auto prices.

President Donald Trump on Wednesday said his administration would "reset" fuel efficiency standards for passenger cars in an effort to put a lid on rising auto prices, as the administration battles inflation and an affordability crisis.

The previous rules, which sought to lower carbon emissions, “put tremendous upward pressure on car prices,” Trump said in the Oval Office.

The president is under political pressure to address affordability concerns after Democrats swept major races last month, fueled by voters' frustration with rising prices.

Overall inflation, as measured by the consumer price index, has risen every month since Trump announced sweeping tariffs on imported goods, including automobiles and car parts, among other items. Food prices have also been rising this year. In early November, the White House announced cuts to dozens of tariffs in a move aimed at cutting food prices.

The average new vehicle price in October surged to an all-time high, above $50,000 for the first time ever, according to Kelley Blue Book. However, KBB said that "despite higher prices, retail sales continue to maintain a healthy pace."