Trump administration rolls back Biden-era fuel economy standards

On Monday, the Trump administration announced new fuel economy standards, reversing Biden-era regulations designed to reduce emissions and promote electric vehicle adoption. The Corporate Average Fuel Economy (CAFE) standards, legislated in 1975, set targets for the fuel efficiency of vehicles, broken down by type. Automakers have progressively enhanced vehicle fuel efficiency over time.

The new Trump administration rule predicts a fleetwide average of 34.9 miles per gallon by 2031, a decrease from the 50.4 miles per gallon projected under the Biden administration. The Department of Transportation claims this will reduce the initial cost of new vehicles by an average of $1,300 and provide automakers with greater flexibility in vehicle design.

Transportation Secretary Sean P. Duffy stated, "Thanks to President Trump's leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn't want." The rule is projected to save American consumers $138 billion over the next five years. However, this comes as gasoline prices are soaring, averaging $4.47 per gallon on Monday, a stark contrast to $2.98 per gallon before the Iran conflict.