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They call it ‘Merzcron': The EU's Franco-German engine is powering up once again

They call it ‘Merzcron': The EU's Franco-German engine is powering up once again

CNN26-06-2025
The clasped hands of French and German leaders have long embodied the spirit of European unity – most famously in 1984, when François Mitterrand and Helmut Kohl stood hand-in-hand at Verdun in a symbol of reconciliation.
So, when Chancellor Friedrich Merz grasped President Emmanuel Macron's hand on the steps of the Élysée palace in early May – a handshake that was long, warm, and accompanied by backslapping – it wasn't just a photo-op.
It was the clearest sign yet that Europe's most important alliance was back in motion. After years of sputtering and frustration under Olaf Scholz, the Franco-German engine is humming again, and it has a new name: Merzcron.
Since Merz's election, the two have met six times – most recently with other NATO leaders at The Hague. They will sit down together again on Thursday at the European Council meeting in Brussels.
Their shared agenda: to drive the European Union response on security, Ukraine and Trump-era uncertainties, and shape Europe's role on the global stage.
Ahead of Wednesday's NATO summit, Macron and Merz laid out their vision in a joint opinion piece in the Financial Times.
'In these testing times, Germany and France - together with our European and transatlantic friends and allies - stand united and strong, to defend our common values as well as the freedom and security of our citizens,' they wrote.
They outlined plans to boost defense spending – aiming to reach 3.5% of GDP in core military investments – and to deepen cooperation between NATO and the EU, calling for a stronger, more sovereign Europe that is no longer reliant on others for its security. They pledged to ensure Ukraine emerges 'prosperous, robust and secure,' and warned that European stability for decades to come hangs in the balance.
The signs are that the powerful 'Mercron' or 'Merkozy' alliance, portmanteaus derived from the names of former German Chancellor Angela Merkel, Macron and his predecessor Nicholas Sarkozy, is evolving into an equally influential 'Merzcron.'
The two-day European Council summit now underway in Brussels, hot on the heels of a G7 meeting in Canada and the NATO leaders' summit in The Hague, is the first of Merz's chancellorship. It will likely be another demonstration of how strong this union could be.
CNN spoke to two stalwarts of the Franco-German partnership – former French President Francois Hollande, who worked closely with Merkel, and Wolfgang Ischinger, a former German deputy secretary of state once described as Europe's most connected former diplomat – to assess its significance for Europe and the world.
Under Scholz, the former German chancellor, the Berlin-Paris axis became strained, something that both Ischinger and Hollande noted.
Stefan Seidendorf, director at the Franco-German Institute in Ludwigsburg, Germany, said Scholz spent so much time doing 'domestic homework' that he was never able to fully focus on Europe.
The three-way coalition he headed was beset with infighting on domestic and Europe issues and eventually collapsed in November last year, triggering an early election.
However, there were also some interpersonal issues at play. 'It was difficult for Macron to get along with this very Protestant, northern German, not very emotional, not into the big symbols of political leadership,' Siedendorf told CNN in a phone interview.
He added that the same went for Scholz, 'who found it difficult to get along with this French president living in the palace of Élysée with all the gold and the glitter and the ceremony.'
But neither was Macron and Merz's friendship a given, considering their different styles. Macron, 47, is Jupiterian and theatrical, hailed by some as a visionary, dismissed by others as a narcissist. Merz, 69, is impulsive, prickly under pressure and occasionally leans into populist bluster.
That said, Ischinger said both leaders 'met rather easily – and got their act together.' Speaking about their shared character traits, he said they 'love interaction. They enjoy difficult questions. These two have a way of understanding each other – they are open.'
The clearest display of 'Merzcron' in action has been around support for Ukraine. Hollande told CNN the duo had already been 'effective' on the issue.
Their recent trip to Kyiv, alongside British and Polish leaders Keir Starmer and Donald Tusk, 'was a symbol of a new kind of determined getting-together of the major European powers to make progress,' Ischinger said.
Paris has long been more hawkish than Berlin on its support for Ukraine. Macron has been a strong proponent of boots on the ground in the country and has allowed Ukraine to fire French-made long-range missiles deep into Russia.
However, Hollande said, 'we've seen that Merz's position is a bit different from that of his predecessor… including on the delivery of missiles capable of reaching Russian territory.'
Since taking office, Merz has welcomed Ukraine's President Volodymyr Zelensky to Berlin and unveiled a new $5 billion package for Ukraine that includes joint co-operation in the development of long-range missiles capable of being fired deep into Russia, some of which could be online by the end of the year.
'Now we're in perfect unity,' Ischinger said of the Franco-German alignment on Ukraine.
Russia's unease over a more coordinated Franco-German approach to Ukraine is already starting to show.
News of last month's visit to Kyiv by Merz and Macron was accompanied by the release of a photo taken ahead of a meeting between them. Sitting on the table was a white tissue.
Its presence sparked an online rumor, amplified by Kremlin officials and later traced back to pro-Russian accounts, that falsely claimed the crumpled tissue – which Macron picked up and pocketed – was a cocaine bag.
The Élysée countered by saying 'when European unity becomes inconvenient, disinformation goes so far as to make a simple tissue look like drugs. This fake news is being spread by France's enemies, both abroad and at home.'
US President Donald Trump's return to the White House has also forced a new alignment between the European powerhouses, particularly on the issue of Europe's security.
The Trump administration's insistence that Europe should do more to defend itself triggered the shift, Hollande explained, saying that it 'forced France and Germany to work together diplomatically and militarily, whereas until then, their main alignment had been on monetary issues.
'Today there is a shared responsibility. Germany must do more for its defense, and France must be willing to share a number of proposals and initiatives – including on defense – with Germany,' Hollande says.
Before even formally taking office, Merz managed to push through the reform of Germany's constitutional debt brake to unlock over half a trillion dollars in defense spending. He has also committed to creating Europe's largest army. Both represent a major shift for Germany.
Previously, Hollande suggested, those moves might have been difficult for France to stomach.
'We used to be very reluctant about German rearmament. That was a politically sensitive issue after the war. But today, no one in France fears German rearmament –we welcome it,' he said.
Macron and Merz also appear to have taken a similar approach to dealing with Trump. Both have had effusive and positive meetings in the Oval Office with a president who has not always been so welcoming to visiting leaders.
Paris and Berlin are also trying to revive the decades-old 'Weimar Triangle.' Established after German reunification in 1991, it aimed to bring Poland deeper into the European fold, led by Germany and France.
Ischinger feels the relative weight of the European Union has shifted eastwards due to the war in Ukraine, meaning that Warsaw, now more than ever, must now be a vital ally for Paris and Berlin. 'Harmony (between France and Germany) is key, but it's not sufficient,' he said.
'The center of gravity of the good old European Union was somewhere between France and Germany. But today, almost half of the members are to the east of Germany,' he added, and giving Poland more say is the best way to bring the continent together.
That shift, too, is already playing out. As well as taking part in the Kyiv trip, Tusk has found himself directly involved in European talks with Trump, as the US president has attempted to broker an end to the Russia-Ukraine war.
Poland's status as Europe's fastest growing economy, its commitment to NATO defense spending – way above other member states' at 4.2% of GDP in 2024, projected to rise to 4.7% this year – and its geographic location bordering Russia, Ukraine and Belarus, have made the nation a key nexus for the continent.
Nonetheless, for Hollande, 'Europe only moves forward when France and Germany speak with one voice and pull in the same direction. Only then can the European machine function properly.'
Ischinger added: 'If Franco-German cooperation works well, you have a perfect precondition to get the entire European Union underway, moving forward.'
For now, the 'Merzcron' engine is firing up and, if it keeps its momentum, it could pull the rest of Europe into gear.
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Trump tariffs live updates: Trump threatens India with 25% tariff, sets copper and Brazil levies
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Trump tariffs live updates: Trump threatens India with 25% tariff, sets copper and Brazil levies

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"As we've had conversations over the past several months, we have become increasingly comfortable that the government administration understands some of our concerns about the fact that cocoa can only be grown and sourced outside of the US." Buck cited comments from Commerce Secretary Howard Lutnick in recent days that left the door open for an exemption for cocoa products. "If you grow something and we don't grow it, that can come in for zero [tariffs]," Lutnick said on CNBC's Squawk Box on Tuesday. "So if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff. ... Coffee and cocoa will be other examples of natural resources," Lutnick added. Hershey plans to raise prices, though Buck stated that the price increases "had nothing to do with tariffs." For the year, Hershey expects to see a $170 million to $180 million cost headwind from tariffs. "We'll continue to press on tariffs relative to the cocoa exemption," Buck said, adding: "That's sort of out of our control, but [we] continue to lean there." Hershey (HSY) is hoping for a Trump administration reprieve on tariffs as rising cocoa prices weigh on its full-year outlook. "I would say that we are even more optimistic now," Hershey CEO Michele Buck said on the company's earnings call. "As we've had conversations over the past several months, we have become increasingly comfortable that the government administration understands some of our concerns about the fact that cocoa can only be grown and sourced outside of the US." Buck cited comments from Commerce Secretary Howard Lutnick in recent days that left the door open for an exemption for cocoa products. "If you grow something and we don't grow it, that can come in for zero [tariffs]," Lutnick said on CNBC's Squawk Box on Tuesday. "So if we do a deal with a country that grows mangos, pineapple, then they can come in without a tariff. ... Coffee and cocoa will be other examples of natural resources," Lutnick added. Hershey plans to raise prices, though Buck stated that the price increases "had nothing to do with tariffs." For the year, Hershey expects to see a $170 million to $180 million cost headwind from tariffs. "We'll continue to press on tariffs relative to the cocoa exemption," Buck said, adding: "That's sort of out of our control, but [we] continue to lean there." India-US trade talks go off rails on row over farm markets Indian officials were initially confident of a trade agreement with the US, but now negotiations appear complicated by the US's announcement that it will impose a 25% tariff on Indian goods starting Aug. 1. India's high tariffs and non-monetary trade barriers remain sticking points, especially concerning agriculture. India imposes an average most-favored-nation tariff of 39% on imported farm goods, compared to 5% in the US. Reuters breaks down some of the key issues in focus: Read more here. Indian officials were initially confident of a trade agreement with the US, but now negotiations appear complicated by the US's announcement that it will impose a 25% tariff on Indian goods starting Aug. 1. India's high tariffs and non-monetary trade barriers remain sticking points, especially concerning agriculture. India imposes an average most-favored-nation tariff of 39% on imported farm goods, compared to 5% in the US. Reuters breaks down some of the key issues in focus: Read more here. Trump says India will be paying a tariff of 25% President Trump accused India on Wednesday of charging high tariffs and said they are among the highest in the world. Trump said that despite the US and India being "friends" they have done "little business" together. "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump wrote on Truth Social. The US president went on to write that India had purchased the "vast majority" of its military equipment from Russia, alongside China and because of this things are "not good." ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA! These latest comments from Trump come after he said on Tuesday that India would face a 20%-25% tariff rate as both sides had failed to reach an agreement ahead of Trump's Aug. 1 deadline, when trading partners would face higher tariffs. Sources said on Wednesday that India hopes to establish a trade deal with the US by fall of 2025. President Trump accused India on Wednesday of charging high tariffs and said they are among the highest in the world. Trump said that despite the US and India being "friends" they have done "little business" together. "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump wrote on Truth Social. The US president went on to write that India had purchased the "vast majority" of its military equipment from Russia, alongside China and because of this things are "not good." ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA! These latest comments from Trump come after he said on Tuesday that India would face a 20%-25% tariff rate as both sides had failed to reach an agreement ahead of Trump's Aug. 1 deadline, when trading partners would face higher tariffs. Sources said on Wednesday that India hopes to establish a trade deal with the US by fall of 2025. Trump says Aug. 1 deadline will not be extended Two posts from Truth Social this morning: And: Two posts from Truth Social this morning: And: Harley-Davidson misses second-quarter profit estimates as tariffs weigh Motorcycle maker Harley Davidson (HOG) reported lower second-quarter profit and did not provide an annual forecast on Wednesday, as US President Trump's tariffs continued to weigh on the motorcycle maker. Reuters reports: Read more here. Motorcycle maker Harley Davidson (HOG) reported lower second-quarter profit and did not provide an annual forecast on Wednesday, as US President Trump's tariffs continued to weigh on the motorcycle maker. Reuters reports: Read more here. India eyes fall deadline for US deal amid Trump threats India has said that it will continue its negotiations with the US for a trade deal and hope one can be established by fall of 2025, despite President Trump's Aug. 1 deadline, where trading partners will face higher tariffs. Bloomberg News reports: Read more here. India has said that it will continue its negotiations with the US for a trade deal and hope one can be established by fall of 2025, despite President Trump's Aug. 1 deadline, where trading partners will face higher tariffs. Bloomberg News reports: Read more here. Luxury car brands Aston Martin and Porsche report tariff hit President Trump's tariffs have caused two automakers to either issue warnings on Wednesday or trim outlooks. British luxury carmaker Aston Martin (AML.L, ARGGY) issued a profit warning on Wednesday, citing the impact of US import tariffs and prolonged suppressed Asian demand linked to China's economic slowdown. While Volkswagen's ( VWAGY) luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with the US and reported a $462-million hit from tariffs in the first half. Reuters reports: Read more here. President Trump's tariffs have caused two automakers to either issue warnings on Wednesday or trim outlooks. British luxury carmaker Aston Martin (AML.L, ARGGY) issued a profit warning on Wednesday, citing the impact of US import tariffs and prolonged suppressed Asian demand linked to China's economic slowdown. While Volkswagen's ( VWAGY) luxury brand Porsche cut its full-year profitability target on Wednesday after the EU's trade deal with the US and reported a $462-million hit from tariffs in the first half. Reuters reports: Read more here. Trump: India may get 20% to 25% tariff but not yet final President Trump said India could face tariffs of 20% to 25%, but added the final rate isn't set yet as both countries work on a trade deal before the August 1 deadline. 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. President Trump said India could face tariffs of 20% to 25%, but added the final rate isn't set yet as both countries work on a trade deal before the August 1 deadline. 'I think so,' Trump told reporters Tuesday when asked if that was a possible tariff rate for New Delhi. 'India has been a good friend, but India has charged basically more tariffs than almost any other country,' Trump said aboard Air Force One as he returned to Washington from a five-day visit to Scotland. 'You just can't do that.' The US Trade Representative Jamieson Greer said "more negotiations" are needed between the US and India in order to secure a trade deal, Greer's statement was made just days before the Aug. 1 deadline for higher tariffs. Bloomberg News reports: Read more here. Brazil asks US to spare key food products, planes from tariffs Brazil has asked the US to spare key sectors from sky-high tariffs that will take effect on Friday. Specifically, it has asked for exemptions for food products and aircraft from Embraer, the world's third-largest planemaker. More from Reuters: Brazil is facing 50% tariffs on its exports to the US from Friday. That is among the highest rates Trump has threatened in his new round of sweeping tariffs. Those levies are coming in part because of what Trump alleges is the country's unfair treatment of its former president, who is currently on trial in the country. Read more here. Brazil has asked the US to spare key sectors from sky-high tariffs that will take effect on Friday. Specifically, it has asked for exemptions for food products and aircraft from Embraer, the world's third-largest planemaker. More from Reuters: Brazil is facing 50% tariffs on its exports to the US from Friday. That is among the highest rates Trump has threatened in his new round of sweeping tariffs. Those levies are coming in part because of what Trump alleges is the country's unfair treatment of its former president, who is currently on trial in the country. Read more here. US-China talks end without further pause, with Trump to make 'final call' US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks' time. "We're going to head back to Washington, D.C., and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. Read more here. US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks' time. "We're going to head back to Washington, D.C., and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. Read more here. US goods trade deficit hits nearly 2-year low as imports tumble The US trade deficit in goods narrowed in June to its lowest in nearly two years as imports dropped sharply. Reuters reports: Read more here. The US trade deficit in goods narrowed in June to its lowest in nearly two years as imports dropped sharply. Reuters reports: Read more here. IMF edges 2025 growth forecast slightly higher, warns tariff risks still dog outlook Reuters reports: Read more here. Reuters reports: Read more here. India braces for higher US tariffs, eyes broader trade deal: Sources India is bracing itself for higher US tariffs, which will likely be between 20-25% on some exports, according to people familiar with the matter. This will be a temporary measure as it holds off on a fresh trade concession ahead of President Trump's August 1 deadline. Reuters reports: Read more here. India is bracing itself for higher US tariffs, which will likely be between 20-25% on some exports, according to people familiar with the matter. This will be a temporary measure as it holds off on a fresh trade concession ahead of President Trump's August 1 deadline. Reuters reports: Read more here. Why markets are shrugging off lack of details in Trump trade deals The simplest reason, as explained by Siebert Financial CIO Mark Malek, is that overall progress in various trade talks suggests that worst case scenarios are being avoided "so I think for the most part we're happy." More from Yahoo Finance's Ben Werschkul: Read more here. The simplest reason, as explained by Siebert Financial CIO Mark Malek, is that overall progress in various trade talks suggests that worst case scenarios are being avoided "so I think for the most part we're happy." More from Yahoo Finance's Ben Werschkul: Read more here. Sign in to access your portfolio

Copper futures tumble as White House says refined metal exempt from 50% tariffs
Copper futures tumble as White House says refined metal exempt from 50% tariffs

Yahoo

time19 minutes ago

  • Yahoo

Copper futures tumble as White House says refined metal exempt from 50% tariffs

This embedded content is not available in your region. Copper futures (HG=F) tanked as much as 19% on Wednesday after a much-anticipated Trump administration directive to impose 50% tariffs on the industrial metal carved out an exemption for refined copper, used in a wide range of industries. Read more: What Trump's tariffs mean for the economy and your wallet Copper futures saw their largest intraday fall on record after the announcement, tumbling to around $4.55 per pound. On Wednesday, the White House announced that starting on Aug. 1, it will impose 50% tariffs on 'semi-finished" copper products. However, 'copper input materials (such as copper ores, concentrates, mattes, cathodes, and anodes) and copper scrap' are not subject to the tariffs. Cathodes are pure sheets of copper used in everything from wiring to autos, construction, and machinery. Read more: The latest news and updates on Trump's tariffs Earlier this month, copper futures surged as imports spiked to record levels ahead of the proposed tariffs. JPMorgan analysts estimated that over the past six months, the US has imported nearly a year's worth of copper from abroad. "The real reason for today's decline is that the increase in the copper price was panic-driven based on anticipation of refined metal having to bear that same tariff," Warwick Smith, CEO of American Pacific Mining Corp (USGDF), told Yahoo Finance on Wednesday. The import rush followed a February executive order that designated copper a critical national security material, prompting a Commerce Department investigation into whether imports threaten domestic supply chains. Leading up to Wednesday's announcement, analysts had anticipated that individual countries could negotiate deals to omit their copper exports. Industry experts say the US currently imports about 50% of the copper it needs for use across an array of industries, from construction to autos to data centers. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Repealing greenhouse gas emissions rule could cost American drivers more, not less
Repealing greenhouse gas emissions rule could cost American drivers more, not less

USA Today

time20 minutes ago

  • USA Today

Repealing greenhouse gas emissions rule could cost American drivers more, not less

Repealing emission standard for new cars could save Americans money — if gas prices drop. Ending greenhouse gas emissions standards for new cars is supposed to result in more 'affordable choices' for consumers and 'regulatory relief' for companies, according to a statement from the Environmental Protection Agency. Yet, the agency's draft impact analysis shows the proposal might instead cost the country more than it would save. It depends on what is counted and assumptions about the broader economy. 'They're trying to cook the books to show that somehow what they're doing saves costs,' Joseph Goffman, a former assistant administrator at the EPA office overseeing air pollution rules, said in an interview. A spokesperson for the agency agreed that some of the modeled scenarios were 'highly speculative' but said they are designed to show the influence of market conditions, like gas prices. One estimate showed repealing emissions standards would cost the country $350 billion a year. Another predicting ideal economic conditions showed annual savings of $490 billion. Neither of those figures included the cost of public health impacts from air pollution. Initial details of the proposal to repeal the 2009 endangerment finding were announced Tuesday by Lee Zeldin, President Donald Trump's pick to lead the Environmental Protection Agency. 'With this proposal, the Trump EPA is proposing to end sixteen years of uncertainty for automakers and American consumers,' Zeldin said at an Indiana auto dealership, calling greenhouse gas rules 'the real threat to Americans' livelihoods.' Dropping emissions standards for new vehicles is one effect of the agency's plan to repeal the 'endangerment finding,' which underpins the federal government's ability to regulate the greenhouse gases that fuel climate change. In 2009, the agency under former President Barack Obama detailed evidence that greenhouse gases, including those emitted by cars, harm human health. Last year, President Joe Biden's administration set rules to reduce the release of these heat-trapping gases as well as other air pollutants. Widely touted economic benefits of $99 billion per year included reduced public health costs from cleaner air along with reduced fuel and maintenance costs. More: Trump EPA reverses pollution limits on power plants How are the costs and benefits calculated? To understand the economic impact of the proposal, the Environmental Protection Agency modeled several different scenarios in a draft report. Some include changing more government policies than others. Some rely on economic factors beyond the government's direct control. For instance, one projection estimates repealing the endangerment finding and the car emissions standard for greenhouse gases would have a net cost of $350 billion for the nation. That scenario includes ending tax credits for new electric cars created by the Inflation Reduction Act. Other projections show that the repeal would result in overall savings once a gallon of gasoline becomes a dollar cheaper than previously forecasted. Goffman suggested that 'an unrealistically low price for gasoline' was the only way the Trump administration could show the plan had broad economic benefits. An EPA spokesperson told USA TODAY: 'These values are illustrative and show the sensitivity of future gas savings based on different fuel prices. Many actions that can impact gas prices in the future and basing the benefits on future gas prices is highly speculative.' Will cars be cheaper? When the Biden administration announced its car pollution standards in 2024, the EPA explained how the rule could change the cost of new cars as part of its an 800-page analysis. Purchase prices were projected to increase, ranging from about $900 for a sedan to $2,600 for an SUV. But the agency said consumers would save money in the long run because of cheaper maintenance and fuel savings over the vehicle's lifetime. For example, sedan and SUV drivers would save $4,400. The savings projected under Biden were even larger after including purchase incentives in the calculations. But those will be eliminated as a result of cuts in Trump's "Big Beautifull Bill" that was approved by Congress weeks ago. For instance, people who buy new electric cars soon will lose access to $7,500 in tax credits. The draft analysis of the new proposal is much shorter – just 63 pages – and does not project changes in the cost of new cars. Instead, it estimated nationwide impacts. Trump administration officials have touted $54 billion in annual savings for Americans. An EPA spokesperson clarified that figure included benefits from expected new vehicle technology but did not include costs such as long-term maintenance. Adding those leads to a net cost increase of $18 billion per year. How will the repeal affect public health spending? When Biden's administration set car emissions standards last year, a report calculated it would save the nation $13 billion annually in public health spending by reducing the amount of fine particulate matter released in the air. This pollution is associated with premature deaths and hospitalizations from respiratory and cardiovascular illnesses. That report also estimated that limiting greenhouse gas emissions would bring $72 billion climate benefits annually. This was calculated from the social cost of carbon, a measure that considers things like human health effects, agricultural productivity and property damage from natural disasters. The repeal proposed by Zeldin would keep the particle pollution limits, however, it would remove standards for greenhouse gas emissions. The new estimates did not include the impacts, like public health, of increases in greenhouse gas emissions. Future of climate change regulation beyond cars Goffman, the former EPA official, said repealing the endangerment finding has impacts beyond car emissions. Its repeal could limit the federal government's power to regulate all greenhouse gas emissions and make future attempts to tackle climate change harder. 'This goes beyond an individual administration exercising discretion that can be reversed by a future administration,' Goffman said. 'They've taken themselves out on the legal ledge, and it's only a couple of millimeters wide.' This proposed repeal is part of a larger movement from the Trump EPA. In June, Zeldin announced intent to remove and scale down air pollution limits on power plants. In that news release, the agency said it would save the power sector about $1.2 billion dollars annually in regulatory costs. It didn't mention that their cost-benefit analysis found it would also cost $8 billion dollars annually from worsened public health. That means a net negative from easing those pollution limits: While companies save money, people would spend more because of poorer health. Electricity generation and transportation are the two biggest greenhouse gas emitting sectors. Together they make up over half of emissions in the country. The plans to scale back limits on power plants and new cars could have significant influence on global efforts to avoid climate change impacts. 'Trump's EPA is trying every trick in the book to deny and avoid their mission to protect people and the environment,' wrote Gina McCarthy, a former EPA administrator who now leads the advocacy group, America Is All In. 'Instead of doing their job, this EPA is putting the safety of our loved ones at risk.' Written comments from the public about the repeal proposal can be submitted until Sept. 15. The agency also plans to hold public hearing sessions next month. More details can be found on the agency's website.

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