The White House announced that it is revoking the state of California's federal emissions-standards waiver, which allows the state to set standards that are tougher than federal guidelines.
The announcement, which President Donald Trump made via Twitter, comes less than two weeks after The Wall Street Journal reported that the U.S. Justice Department is investigating four automakers for antitrust violations tied to an emissions agreement with the state. Ford (F - Get Report) , Honda (HMC - Get Report) , BMW (BMWYY) and Volkswagen (VWAPY) reportedly came to an agreement with the state "to follow tailpipe-emissions standards beyond those proposed by the Trump administration," according to the Journal.
But in tweets Wednesday, Trump said that revoking the waiver would result in more jobs for the state:
The Trump Administration is revoking California's Federal Waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially SAFER. This will lead to more production because of this pricing and safety......— Donald J. Trump (@realDonaldTrump) September 18, 2019
....far safer and much less expensive. Many more cars will be produced under the new and uniform standard, meaning significantly more JOBS, JOBS, JOBS! Automakers should seize this opportunity because without this alternative to California, you will be out of business.— Donald J. Trump (@realDonaldTrump) September 18, 2019
But California Gov. Gavin Newsom (D) called Trump's move "a political vendetta ... that could have devastating consequences for our kids' health and the air we breathe if California were to roll over. But we will not."