The Trump administration implements a major policy change to weaken national fuel economy standards by easing pressure on automakers to produce more efficient vehicles.
This reverses a key Biden-era climate initiative.
The announcement was made at an event at the White House with top automotive executives.
It reverses the ambitious goals that were proposed to accelerate the transition to electric vehicles (EV) and reduce greenhouse gas emissions.
What are the key changes?
The Biden administration required automakers to improve fuel efficiency by about 2% annually, with the goal of achieving a fleet average of about 50 miles per gallon (mpg) by 2031.
The Trump administration’s latest rule suggests a 0.5% annual increase, with the goal of reaching an average of about 34.5 mpg by 2031.
The administration is eliminating a program that allows automakers like Ford and GM to buy regulatory credits from companies like Tesla that exceeded efficiency standards. Officials called this a subsidy that “artificially propped up the electric vehicle industry.”
The new rule also aligned with a broader shift against electric vehicles. The move is part of a radical shift away from support for electric vehicles.
The administration has already relaxed tailpipe emissions rules, eliminated federal tax credits for electric vehicle purchases and taken steps to prevent states like California from setting their own zero-emission vehicle mandates.
What drives this movement?
The administration and the automakers that support them argue that the 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 “common sense victory” aligned 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 unworkable without a massive and uncertain shift toward electric vehicles.
How will this affect Americans?
The effects are profoundly decisive and offer a balance between initial costs and long-term expenses and environmental impact.
Potential Affected Cited by Supporter:
- The administration projects that lower technology costs will make new cars, especially larger models, cheaper from the start.
- Less regulatory pressure could mean continued wide availability of gasoline-powered pickup 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 through 2050.
- This will also pose greater pollution and health risks. Transportation is the largest source of greenhouse gas emissions in the United States. Weaker standards mean more carbon dioxide and other pollutants. Environmental groups warn that this worsens air quality and threatens public health, especially that of children and the elderly.
What’s next?
The long-term impact will depend on whether this measure saves Americans the money promised or, as environmentalists argue, results in higher costs and greater environmental damage for years to come.
