Trump Rolls Back Biden-Era Fuel Efficiency Standards, Citing Economic Concerns
New Rules Slash MPG Targets for Cars and Light Trucks, Sparking Praise from Automakers and Criticism from Environmental Advocates
President Donald Trump has announced the rollback of fuel efficiency standards for passenger vehicles and light trucks that were previously enacted under the Biden administration, calling the current rules “anti-economy.”
The move is intended to reduce consumer expenses and was announced in the presence of executives from major automakers, including Stellantis CEO Antonio Filosa and Ford Motor Company CEO Jim Farley, who stated that his company can help provide more affordable vehicles to the U.S. market.
Trump Rolls Back Biden’s Fuel Efficiency Rules
According to ABC News, Trump said:“We are officially ending Biden’s extremely burdensome and, in fact, horrible standards. These rules impose costly restrictions on our economy and have caused a range of problems for car manufacturers both domestically and abroad.”
Under the Biden-era rules, passenger vehicles were required to achieve an average fuel economy of 50 miles per gallon (mpg) by 2031 (approximately 4.7 liters per 100 km). The new proposal lowers the required mileage to 34.5 mpg (around 6.8 liters per 100 km).
Biden’s stricter standards aimed to reduce fuel costs for consumers while promoting environmental protection, though they imposed additional expenses on automakers.
Cost Concerns
Trump said the rollback addresses affordability concerns nationwide, a point the White House had previously defended. According to a White House official, the Trump administration’s federal fuel efficiency reset is expected to save Americans up to $109 billion.
The administration also plans to end the 2028 vehicle carbon credit trading system, which had required automakers to buy credits to meet strict standards. Tesla, as the largest U.S. electric vehicle producer, had financially benefited from this system.
Additionally, Trump announced that his administration would revoke California’s emissions waivers, which had been granted under Biden, following a Senate vote in May to eliminate electric vehicle emissions exemptions in the state.
Automakers Welcome the Change
Ford CEO Jim Farley praised the move, saying:“As America’s largest automaker, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities. We can make tangible progress in carbon emissions and energy efficiency while offering customers broader and more affordable options.”
Stellantis CEO Antonio Filosa added:“Stellantis appreciates the Trump administration’s efforts to realign corporate fuel economy standards with actual market conditions. We look forward to working with the National Highway Traffic Safety Administration to develop environmentally responsible policies that also give customers vehicle choices at accessible prices.”
A GM spokesperson also stated:“GM supports the Trump administration’s goals to better align fuel economy standards with market realities. We have always advocated for a single national standard that supports customer choice and ensures long-term stability for the automotive industry.”
Background on Fuel Standards
Last year, the National Highway Traffic Safety Administration (NHTSA) announced new fuel economy standards for vehicles from 2027 to 2031, stating that the standards would save Americans over $23 billion in fuel costs while reducing pollution. Increased efficiency would save the average consumer $600 in gasoline costs over the life of a vehicle.
The same NHTSA statement projected that the standards would save nearly 70 billion gallons of gasoline by 2050, preventing over 710 million metric tons of CO2 emissions.
Biden’s 2024 rule required a 2% annual increase in fuel efficiency for vehicles produced between 2027 and 2031, with a 20% annual increase for electric vehicles, raising the average fuel economy to approximately 50.4 mpg.
Trump’s Claims and Criticism
Transportation is one of the largest contributors to greenhouse gas emissions in the U.S., with cars and trucks accounting for the majority, according to the EPA.
The Trump administration claims that rolling back fuel standards will lower vehicle costs, but Consumer Reports analysis of vehicle purchases from 2003 to 2021 found no statistically significant increase in inflation-adjusted prices across vehicle categories. Over the same period, fuel economy improved by 30%, and consumers saved an average of $7,000 in fuel costs per 2021 vehicle compared to 2003 models.
Environmental Concerns
Dan Baker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, stated:“With one stroke, Trump worsens three of our nation’s most pressing problems: thirst for oil, high gas prices, and global warming.”
He added that tackling pollution and high fuel costs requires strict fuel efficiency standards, not their elimination to favor major oil and auto industry allies. Critics warn that Trump’s decision could increase oil consumption, hinder the U.S. in the green tech race, and allow automakers to exploit regulatory rollbacks without true innovation.
