President Donald Trump signed three congressional resolutions on Thursday aimed at dismantling California's electric vehicle policies, effectively reversing rules that had been a cornerstone of the Biden administration's climate agenda.

What To Know: According to CNBC, the resolutions roll back California's mandate to phase out gas-powered vehicles and diesel engines by 2035, a plan that had been adopted by 11 other states and backed by the U.S. Environmental Protection Agency.

Speaking at the White House, Trump criticized California's EV push as harmful to the American auto industry.

"We officially rescue the U.S. auto industry from destruction by terminating California's electric vehicle mandate," he said.

Trump said the mandates forced automakers into producing vehicles they could not economically sustain and dismissed the idea that state-level rules should shape national manufacturing strategies.

General Motors and Toyota had previously lobbied against California's EV rules, citing concerns about fragmented national standards and production costs. Under the Biden administration, the EPA had authorized California to set its own aggressive clean vehicle goals, including requiring the majority of new car sales to be electric by 2035. That decision was central to national emissions reduction efforts and had effectively set a precedent for stricter clean air policies.

California Gov. Gavin Newsom criticized the repeal, calling it a victory for major polluters and accusing Republicans of undermining environmental progress for political gain.

Trump's action marks a significant policy reversal and sets the stage for a renewed national debate over the future of automotive regulation, emissions standards and the role of states in shaping environmental policy.

Shares of EV companies including Tesla Inc (NASDAQ:TSLA), Rivian Automotive Inc (NASDAQ:RIVN) and Lucid Group Inc (NASDAQ:LCID) were all down less than 1% at the time of writing Thursday, according to Benzinga Pro.

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