Investing.com -- European truck stocks fell Thursday after the U.S. Environmental Protection Agency (EPA) said it will reconsider environmental rules implemented under Joe Biden, including the 2022 Heavy-Duty Nitrous Oxide (NOx) regulation.
EPA Administrator Lee Zeldin announced that the agency will review regulations for Model Year 2027 and later light- and medium-duty vehicles, along with greenhouse gas standards for heavy-duty trucks.
These rules, which impose over $700 billion in regulatory costs, have been a key part of the Biden administration’s electric vehicle (EV) push. Critics argue they limit consumer choice and drive up costs for everyday goods.
“The American auto industry has been hamstrung by the crushing regulatory regime of the last administration. As we reconsider nearly one trillion dollars of regulatory costs, we will abide by the rule of law to protect consumer choice and the environment,” Zeldin said.
The EPA is also reviewing the Biden-era “Clean Trucks Plan,” including the NOX regulation, which has raised concerns over higher costs for essential products like food and household goods.
Shares in Europe-based truck companies fell sharply after the news.
Industry giant Daimler Truck Holding (ETR:DTGGe) saw its shares slide nearly 8%, while Traton SE (ETR:8TRA) lost 3.8% as of 09:27 GMT. IVECO Group slipped 2.7%.
Jefferies analysts view the pullback in European truck shares as “a buying opportunity.”
“Our positive view on the cycle has never been driven by pre-buy, but a turn in the freight cycle. Yes, ’26 earnings will likely decline, but the multiple should be higher as ’26 is no longer peak earnings,” they noted.