On Wednesday, the US government canceled a rule that gave carmakers extra credit for electric vehicles (EVs) in fuel economy calculations. This rule, known as the “fuel content factor,” aimed to boost EV production by counting electric cars as more fuel-efficient under Corporate Average Fuel Economy (CAFE) standards. These standards seek to cut energy use by increasing fuel efficiency for cars and trucks. The rollback coincides with the Environmental Protection Agency scrapping the "endangerment finding" and tailpipe pollution limits earlier this year. Dan Becker of the Centre for Biological Diversity warned, "American families will suffer long-term harms so that giant auto and oil companies can pocket short-term profits. They’re popping champagne corks at the Opec and GM headquarters but also in Beijing, where China’s EV makers will face no competition from the US to dominate the world’s clean car market." US health and environmental groups sued the EPA on Wednesday over these rollbacks. The Trump administration also plans to reduce the fuel economy targets set by the National Highway Traffic Safety Administration, relaxing standards forced by fines on automakers. Sean Tucker of Kelley Blue Book notes this move serves as a political buffer to avoid potential future enforcement. He says it pressures automakers to keep producing petrol cars now, but this risks losing global EV leadership to China, which strongly supports EV innovation. David Hart from the Council on Foreign Relations explained that without strong US demand, automakers lose chances to develop better EV models. He warned that the US’s $150 billion auto export business could shrink if it falls behind globally. Ford’s CEO called the auto industry “a regional business,” highlighting shifts as Chinese EVs may soon appear widely on North American roads. American politicians and groups like the Zero Emission Transportation Association criticized the rollback, saying it will hurt US innovation, manufacturing, and global competitiveness. Meanwhile, the Alliance for Automotive Innovation defended easing standards, saying current EV sales and government support don’t meet old targets. Tucker predicts a future middle ground between loose and strict rules is possible, and carmakers will still improve fuel efficiency over time. Experts warn that the back-and-forth US policy creates uncertainty and investment losses. Alan Taub, a University of Michigan professor, urges governments worldwide to align EV policies for fair competition and steady progress. He believes electric cars are the future, "but they have to do it without much support."