The Trump administration has approved new standards that relax fuel economy regulations for automobiles. This move effectively reverses the stricter standards implemented by the Biden administration aimed at addressing climate change and promoting electric vehicle adoption. While this may lower costs for automakers and new car prices, it is expected to increase fuel consumption and carbon dioxide emissions in the long run.
According to reports from Reuters and other outlets, President Trump announced on September 26 via social media platform Truth Social, "I have approved new fuel economy standards that end the ridiculous electric vehicle mandate policy," calling it a significant day for American auto industry workers and car buyers.
He added, "The new standards will reduce waste in the U.S. auto production process, allowing consumers to save thousands of dollars when purchasing new cars." Trump also stated that all automakers, from General Motors to Ford and Stellantis, want to produce vehicles in the U.S., and now they can do so.
While the specific details of the new standards have not yet been released, it appears to finalize the fuel economy regulation rollback proposed by the Trump administration last December.
Fuel economy standards determine how far a vehicle can travel on a certain amount of fuel. Higher fuel economy means less fuel is needed to cover the same distance.
The Trump administration's plan, introduced last December, proposed to retroactively lower the fuel economy standards for 2022 model vehicles and to increase the standards by only 0.25% to 0.5% annually until 2031. As a result, the average fuel economy of vehicles produced by automakers will be capped at 34.5 miles per gallon (approximately 14.7 km per liter) by 2031, significantly lower than the 50.4 miles per gallon (approximately 21.4 km per liter) set by the Biden administration.
This effectively reduces the burden on automakers to produce higher fuel economy vehicles or electric cars.
The previous Biden administration had raised fuel economy and emissions standards to combat climate change and promote green vehicle adoption, increasing the standards by 8% annually for 2024 and 2025 model vehicles, and by 10% for 2026 models, with a 2% increase each year from 2027 to 2031.
Trump has argued that such policies forced automakers to make costly technological investments, driving up new car prices. The current regulatory rollback also focuses on lowering the prices consumers pay for vehicles.
The U.S. Department of Transportation estimates that the new standards will reduce the average price of a new car by about $930. However, if sales of lower fuel economy vehicles increase, fuel consumption may rise. The department projects that under these standards, U.S. fuel consumption could increase by about 100 billion gallons (approximately 378.5 billion liters) by 2050, with consumer fuel expenditures rising by $185 billion and carbon dioxide emissions expected to increase by about 5%.
This relaxation of fuel economy regulations has drawn criticism for being counterproductive to climate change efforts. Concerns have also been raised that the U.S. auto industry may fall behind in the global shift toward electric vehicles.
Dan Becker, director of the Safe Climate Transport Campaign, criticized the move in an interview with the political media outlet Politico, stating, "This will not help the U.S. auto industry. This action, taken while the world is moving toward advanced electric vehicle technology in China, essentially tells the U.S. auto industry that it can lose its competitiveness and decline."
* This article has been translated by AI.
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