President Donald Trump has introduced a new plan that allows auto manufacturers to produce less fuel-efficient vehicles, thereby increasing their allowable emissions. The National Highway Traffic Safety Administration (NHTSA) announced a proposal to roll back fuel economy standards that had been established by the Biden administration for model years 2022 through 2031.
The Trump administration has previously eliminated incentives for electric vehicle (EV) purchases, rolled back energy efficiency policies, and eased general pollution regulations. The president has emphasized the need for increased U.S. oil and gas production, suggesting that this approach will benefit American carmakers. However, critics raise concerns that these changes may lead to higher fuel costs for consumers, as well as increased health risks and environmental impacts due to higher tailpipe emissions.
According to Darien Davis, a government affairs advocate with the League of Conservation Voters, the reduction in fuel economy standards could lead to higher costs for drivers and hinder progress in reducing air pollution, which has implications for public health, particularly for vulnerable populations living near heavy traffic areas.
NHTSA’s proposed standard is set at approximately 34.5 miles per gallon by 2031, significantly below the 50.4 miles per gallon target established by the Biden administration. The agency had previously estimated that enhanced fuel economy standards implemented in 2024 could save consumers around $23 billion in fuel costs over time, equating to roughly $600 per car owner over the lifespan of their vehicle. These previous standards were also expected to significantly reduce gasoline consumption and greenhouse gas emissions.
General Motors and Stellantis, which owns Chrysler, have faced substantial penalties under the existing fuel economy regulations and were present at the announcement of the new standards. During the event, President Trump remarked to industry leaders that his administration’s actions would result in positive changes for the auto sector. Ford’s CEO later characterized the decision as a victory for affordability and practicality in automobile manufacturing.
Source: https://www.theverge.com/news/837575/trump-rollback-fuel-economy-standards