Trump Administration to Roll Back Biden’s Fuel Economy Standards

President Donald Trump is poised to revoke the fuel-economy standards established by his predecessor, Joe Biden. This decision, announced by an official on Wednesday, aims to reduce vehicle prices for consumers. In a ceremony scheduled for mid-afternoon at the White House, Trump will be joined by the CEOs of Ford and Stellantis, along with a representative from General Motors. The presence of these major automakers underscores the industry’s support for the rollback.

The White House contends that Biden’s fuel efficiency regulations would have increased the cost of new vehicles by approximately $1,000. According to the administration, the changes proposed by Trump could save American consumers a total of $109 billion. This initiative focuses on the Corporate Average Fuel Economy (CAFE) standards, which have been in effect since 1975, following the Arab oil embargo. These regulations dictate how far vehicles must travel on a gallon of fuel.

While the full details of the rollback remain unclear, the Trump administration has consistently expressed its opposition to the efficiency increases mandated by Biden. Under Biden’s plan, fuel efficiency was set to improve by 8% annually for model years 2024 and 2025, escalating to 10% annually for model year 2026, with the goal of achieving over 50 miles per gallon by 2031. In a proposed rule released in June, the Trump administration argued that Biden’s administration had incorrectly included electric and hybrid vehicles in their calculations, claiming that the standards would be unachievable for gasoline-powered cars and would compel a significant market shift.

Trump has criticized what he refers to as an electric vehicle (EV) “mandate.” Concurrently, Republican lawmakers have repealed clean-energy tax credits as part of a broader tax and spending bill. They have also targeted California’s authority to establish its own vehicle-emission standards.

In support of the initiative, Ford CEO Jim Farley stated, “As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability. This is a win for customers and common sense.”

Conversely, Gina McCarthy, a former senior official during the administrations of Biden and Barack Obama, criticized the rollback. She argued that it would hinder the automotive industry’s transition to electric vehicles and exacerbate climate change. McCarthy remarked, “If there’s one thing you can count on, it’s that this administration will never act in the best interest of our health or the environment. The rest of the world will continue to innovate and create cleaner cars that people want to buy and drive, while we’re forced to sit in our clunkers, paying more for gas, and pumping out more tailpipe emissions.”

As the Trump administration moves forward with these changes, the impact on both consumers and the automotive industry remains to be seen.