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THE TRUMP administration’s decision to soften federal fuel-economy regulations is a fairly straight-up exchange of regulatory relief for the promise of job repatriation in the domestic automotive sector. I get that. And whether or not those jobs ever show up, it’s sort of thrilling to watch the U.S. embrace Beijing-style central planning.

As for the auto makers’ cries that existing standards will prove too costly, with all respect: wolf. They always claim new technology will drive prices up and jobs out—catalytic…