President Trump has announced a plan to scale back fuel efficiency standards set during the Biden administration, arguing that the move will lower costs for American consumers. The Transportation Department's proposal, which must still go through a formal rulemaking process, would reduce the required average fuel economy for cars and light trucks from about 50 miles per gallon—set to take effect with 2031 model-year vehicles—to roughly 34.5 mpg. The plan would also end a credit-trading program that automakers have used to meet these standards, starting with the 2028 model year, Bloomberg reports. Trump outlined the proposal at the White House on Wednesday alongside executives from Detroit automakers.
"Today is a victory for common sense and affordability," Ford CEO Jim Farley said in the Oval Office, per the Washington Post. "We believe that people should be able to make a choice, as you said, Mr. President, and we will invest more in affordable vehicles." The auto and oil industries have been critical of the Biden-era standards, arguing that they were unrealistic and effectively forced automakers to prioritize electric vehicles over gas-powered cars. Automakers were expected to ramp up electric vehicle sales to meet the stricter targets, as well as comply with related federal limits on tailpipe emissions. Also:
- Trump's steps: The president has already signed legislation removing penalties for automakers who miss the fuel economy targets and has ended the consumer tax credit for electric vehicle purchases. His administration has also moved to roll back limits on greenhouse gas emissions from cars and trucks. Supporters of the new proposal say the changes will better align fuel economy standards with market demand and allow consumers more choice. The administration argues that the rollback will save Americans $109 billion over five years, with families potentially seeing $1,000 in savings on the average cost of a new vehicle.
- The opposition: Others argue that weaker standards will lead to higher gasoline costs over time and benefit oil companies at the expense of consumers and the environment. Environmental groups point out that the Biden-era rules were expected to cut gasoline consumption by nearly 70 billion gallons through 2050 and save consumers over $23 billion in fuel costs. Environmental groups denounced the change in fuel economy regulations. "They're going to raise costs for consumers at the gas pump and they're going to signal to the Chinese that the world market is open to you and we're just going to abandon it," said Dan Becker of the nonprofit Center for Biological Diversity.
- The back and forth: The whipsawing is hard on automakers, said a lobbyist. "What the industry really needs is to be able to plan for a decade," Rich Gold said. "The auto industry doesn't deal well with disruption and uncertainty. The infrastructure to build cars and get them to where they need to go takes a long time to build out."
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