The Trump administration is rolling out a major policy reversal to weaken national fuel economy standards by easing pressure on automakers to produce more efficient vehicles.
This reverses a key climate initiative from the Biden era.
The announcement was made at a White House event with top automotive executives.
It reverses the ambitious targets proposed to accelerate the transition to electric vehicles (EVs) and reduce greenhouse gas emissions.
What are the main changes?
The Biden administration required automakers to increase fuel efficiency by about 2% annually, targeting a fleet average of about 50 miles per gallon (mpg) by 2031.
The Trump administration’s latest rule suggests an annual increase of 0.5%, aiming for an average of about 34.5 mpg by 2031.
The administration is eliminating a program that allowed automakers like Ford and GM to buy statutory credits from companies like Tesla that exceeded efficiency standards. Officials labeled this a subsidy that “artificially propped up the EV industry.”
The new rule also matched a broader anti-EV shift. The move is part of a sweeping shift away from supporting electric vehicles.
The administration has already eased regulations on tailpipe emissions, eliminated federal tax credits for electric car purchases and moved to block states like California from setting their own zero-emission mandates for vehicles.
What is driving this movement?
The administration and supporting automakers argue that previous standards were unrealistic and expensive.
President Trump claimed the rollback would save car buyers about $1,000 on the purchase price of a new vehicle by reducing technology mandates.
In light of this, Ford CEO Jim Farley calls this a “victory for common sense” in line with customer demand for larger, less efficient trucks and SUVs.
Major automakers, especially those that rely on profitable trucks and SUVs, argue that the old rules were useless without a massive, uncertain shift to electric vehicles.
How will this affect Americans?
The effects are profoundly decisive and provide a trade-off between upfront costs and long-term expenses and environmental impact.
Potentially Affected Quoted by Supporter:
- The administration expects lower technology costs to make new cars, especially larger models, cheaper up front.
- Less regulatory pressure could mean continued wide availability of gasoline-powered trucks and SUVs, which remain very popular.
Potential impacts cited by critics:
- While a new car may be cheaper, owners will pay more at the pump. According to the National Highway Traffic Safety Administration (NHTSA), American drivers could pay up to $185 billion more in fuel costs by 2050.
- This will also lead to increased pollution and health risks. Transportation is the largest source of US greenhouse gas emissions. Weaker standards mean more carbon dioxide and other pollutants. Environmental groups warn that this worsens air quality, threatening public health, especially for children and the elderly.
What’s next?
The long-term impact will depend on whether this move saves Americans money as promised or, as environmentalists argue, leads to higher costs and greater environmental damage in the years to come.
