U.S. President Donald Trump on Wednesday declared that he is rolling back the Biden-era federal fuel economy rules, substantially easing fuel efficiency standards for millions of new gasoline-powered cars and light trucks.
“We are officially terminating Joe Biden’s ridiculously burdensome—horrible, actually—CAFE standards that imposed expensive restrictions,” Trump stated.
These regulations, known as the CAFE standards, determine the fuel-efficiency requirements for new cars and light trucks. Trump argued that the Biden-era rules were overly stringent and drove up vehicle prices. The White House claims that eliminating these standards will save U.S. consumers a combined $109 billion.
Gasoline combustion is a major driver of global warming, and transportation remains the leading source of greenhouse gas emissions in the United States.
The Corporate Average Fuel Economy (CAFE) standards, introduced in 1975, established fuel-efficiency benchmarks for new vehicles and have been gradually tightened to improve overall mileage.
Under former President Joe Biden, these standards were strengthened substantially to require automakers to raise the fuel efficiency of passenger cars and light trucks to 50 miles per gallon by 2031.
On Wednesday, Trump proposed lowering the target to 34 miles per gallon by 2031, under the oversight of the National Highway Traffic Safety Administration. He argued that Biden’s standards, combined with the push for electric vehicles, drove car prices up by more than 25% overall, including an 18% increase in a single year.
The announcement represents the Trump administration’s latest move to overturn Biden-era initiatives that promoted cleaner-energy vehicles. These include easing tailpipe emissions regulations, eliminating penalties for automakers failing to meet federal mileage targets, and ending consumer tax credits of up to $7,500 on electric-vehicle purchases.
Fox News reported that Ford CEO Jim Farley praised the decision, describing it as “a win for customers and common sense,” and noted that the company can continue reducing emissions while maintaining affordable vehicle prices.
Stellantis CEO Antonio Filosa stated that the revised rules will allow the company to provide vehicles that consumers genuinely want at reasonable prices. GM also expressed support for a single national fuel standard that aligns with ‘market realities’ and offers greater choice for customers.
Previously, the president has enacted legislation preventing California from implementing a ban on new gasoline-powered vehicle sales.
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