The fuel economy standards set by former President Joe Biden are facing a potential rollback as U.S. President Donald Trump proposes to ease regulations on gasoline-powered cars. Trump’s move aims to reverse one of Biden’s key climate initiatives, which encouraged the adoption of electric vehicles. The National Highway Traffic Safety Administration (NHTSA) is considering a significant reduction in fuel economy requirements for model years 2022 to 2031, suggesting an average of 34.5 miles per gallon by 2031, down from the previously set 50.4 miles per gallon.
Under the proposed revisions, fuel efficiency standards would see incremental increases between 0.25% and 0.5% annually until 2031. This contrasts with the approach taken by the Biden administration, which had mandated an 8% annual increase in fuel efficiency for model years 2024-2025 and a 10% increase for 2026. While Biden’s rules aimed to push automakers towards producing more electric vehicles, they did not mandate an immediate shift away from gasoline-powered cars.
The NHTSA estimates that the proposed changes could lead to an initial reduction of $930 in vehicle costs but may result in an increase in fuel consumption by approximately 100 billion gallons by 2050. This could potentially cost Americans an additional $185 billion for fuel and result in a 5% rise in carbon dioxide emissions.
Furthermore, the proposal includes plans to eliminate credit trading among automakers by 2028 and end certain credits for fuel-saving technologies. California Governor Gavin Newsom criticized Trump’s proposal, stating that it would force Americans to spend more on fuel and worsen air quality in communities. Transportation remains a significant contributor to U.S. greenhouse gas emissions.
In a bid to make vehicles more affordable, Ford CEO Jim Farley expressed support for the proposal, emphasizing the importance of consumer choice. Trump defended the affordability of vehicles, despite recent data showing a 0.8% year-over-year increase in new vehicle prices. General Motors CEO Mary Barra highlighted the challenges faced by the auto sector due to evolving regulations, including the potential need to shut down production plants.
The NHTSA projects that the proposed changes could result in increased vehicle emissions equivalent to those of 7.7 million vehicles annually compared to the Biden administration’s plan. Trump’s administration has also taken other measures to support the sale of gas-powered vehicles, such as overturning EV tax credits and preventing California from banning traditional gasoline vehicles post-2035.
