The Trump Administration Plans to Suggest Loosened Fuel-Economy Rules

The Trump administration is set to propose less stringent fuel-efficiency regulations in order to reduce vehicle manufacturing costs. This move is aligned with the president's objective of reversing what he calls the "EV mandate" from the Biden administration, which he believes has contributed to the rising prices of new cars. The White House is expected to make an official announcement today, with updates to follow as more details emerge.

According to Automotive News, the proposed changes will roll back the fuel-efficiency requirements established by the Biden administration last year. Under current regulations, automakers are required to achieve an average of 50 mpg across their 2031 model-year vehicles. This adjustment is part of President Trump's broader strategy to dismantle policies he sees as promoting electric vehicles at the expense of affordability.

In the past, the president has argued that high fuel-efficiency standards have driven up car prices. As reported by Automotive News, major automotive executives from Detroit are expected to be present at the announcement at the White House. While the specifics of the new proposal have not been revealed, it is anticipated that the updated regulations will be less demanding than those enforced under the Biden administration.

Earlier this year, the National Highway Traffic Safety Administration (NHTSA) announced that the fuel-efficiency standards finalized under the Biden administration had not properly addressed the role of electric vehicles when drafting future regulations. U.S. Transportation Secretary Sean Duffy subsequently ordered a revision of the fuel-economy rules, which the Trump administration had criticized as an overreach of government power.

Despite the administration's framing of this policy change as a move toward greater affordability, it is unlikely to significantly reduce consumer costs in the near term. Automakers typically plan their vehicle lineups years in advance, with powertrain development and production taking an extended period of time. Furthermore, although the U.S. is a significant market, global trends are increasingly moving towards electrification, making decisions in other key markets crucial for car manufacturers.

Additionally, this shift could have unintended consequences, particularly in terms of consumer spending at gas stations. According to estimates, the regulations introduced under the Biden administration were projected to save nearly 70 billion gallons of gasoline by 2050, translating into a savings of around $23 billion over that period.

The Trump administration is expected to announce its new proposal later today, and updates will be provided as more information becomes available.

Author: Riley Thompson