Menu

Search

  |   Politics

Menu

  |   Politics

Search

Google Add as a preferred source on Google

Trump to Ease U.S. Fuel-Economy Standards

Trump to Ease U.S. Fuel-Economy Standards. Source: The White House, Public domain, via Wikimedia Commons

The Trump administration is set to unveil new U.S. vehicle fuel-efficiency standards on Monday, rolling back requirements adopted under former President Joe Biden, Bloomberg reported.

President Donald Trump announced plans in December to loosen the Corporate Average Fuel Economy, or CAFE, standards, arguing that less stringent requirements would reduce manufacturing costs, make vehicles more affordable and support U.S. auto industry jobs.

A U.S. official confirmed the updated fuel-economy rules are scheduled for release Monday. Transportation Secretary Sean Duffy also described the announcement as a significant development for American auto workers.

If the final regulations largely match the administration’s December proposal, the required average fuel economy for model-year 2031 vehicles would decline to 34.5 miles per gallon. That compares with roughly 50 mpg under the Biden-era standards.

The previous rules were part of a broader effort to improve vehicle efficiency and accelerate the shift toward electric vehicles. Automakers and oil producers had pushed back against the tougher standards, arguing that they exceeded what existing vehicle technology could reasonably deliver and encouraged EV sales at the expense of gasoline-powered models.

Environmental groups have opposed the rollback, warning that weaker fuel-efficiency standards could leave motorists consuming more gasoline and facing higher fuel expenses. The Trump administration maintains that easing the requirements will lower new-vehicle prices and strengthen domestic auto manufacturing.

The policy change comes as U.S. consumers face elevated fuel costs. Diesel prices have climbed to record levels, while gasoline prices have reached their highest level ever for September amid supply disruptions associated with the Iran war and Russia’s invasion of Ukraine.

Trump officials have been weighing measures to reduce fuel prices, including a potential temporary restriction on U.S. diesel exports, Bloomberg reported.

Attention will now turn to the final CAFE requirements and whether they closely follow the December proposal. The details will determine the extent of the regulatory shift for U.S. automakers as they plan vehicle production through the 2031 model year.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.