Trump to loosen restrictions on car fuel efficiency regulations

President Donald Trump is preparing to unveil major changes to federal fuel efficiency standards established under the Biden administration, which were designed to boost electric vehicle adoption. The revisions, developed by the National Highway Traffic Safety Administration (NHTSA), will lower the mileage requirements for vehicles from model years 2022 through 2031.

The announcement is scheduled for 2:30 p.m. Wednesday in the Oval Office, where Trump will be joined by executives from Ford, Stellantis, and GM. The automakers have praised the move as a common sense approach. The administrations push reflects an ongoing effort to make conventional gas-powered vehicles more competitive and reduce incentives for electric vehicle production.

Earlier this year, Trump ended electric vehicle tax credits and blocked Californias plan to prohibit sales of gas-powered cars after 2035. Speaking at a cabinet meeting on Tuesday, he said, We are revitalizing the automobile industry, adding that the sector will achieve unprecedented growth under his leadership.

Corporate Average Fuel Economy (CAFE) standards, first established in 1975 to reduce reliance on foreign oil, have been tightened over the years to encourage environmentally friendly vehicle production. Under the Biden administration, NHTSA had planned to increase the fuel economy standard to about 50 miles per gallon by 2031 for light-duty vehicles, up from 39 mpg, aiming to cut fuel use by 64 billion gallons and emissions by 659 million metric tons, with projected savings of $35.2 billion for consumers.

In recent years, some automakers faced significant penalties for failing to meet fuel efficiency targets. Stellantis paid $190.7 million for 2019-2020 violations, after nearly $400 million in fines from 2016 to 2019. GM incurred $128.2 million in penalties for 2016 and 2017.

Stellantis CEO Antonio Filosa commented, We welcome the Trump Administrations effort to adjust CAFE standards to reflect actual market conditions. We look forward to collaborating with NHTSA on policies that balance environmental responsibility with consumer choice and affordability.

GM also expressed support, stating, We have long advocated for a single national standard that ensures customer choice and industry stability. We remain committed to offering a broad range of both electric and gas-powered vehicles.

Ford CEO Jim Farley added, Aligning fuel efficiency standards with market realities allows us to make progress on emissions and energy efficiency while maintaining affordability and options for our customers. This approach benefits both consumers and the industry.

Author: Aiden Foster