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[BUSINESS] · United States · 26 sources

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Trump approves new fuel economy standards to roll back EV mandates

President Donald Trump has approved new fuel economy standards that roll back requirements established under the Biden administration. The move is intended to terminate what the administration describes as an electric vehicle mandate and aims to reduce manufacturing costs and lower vehicle prices for consumers.

The new standards target Corporate Average Fuel Economy (CAFE) requirements. While the Biden-era rules sought to increase fleetwide fuel economy and encourage electric vehicle adoption, the new policy is expected to lower targets for model year 2031 to approximately 34.5 miles per gallon.

Trump stated that the administration is investing over $100 billion in the American auto industry and noted that manufacturers such as General Motors, Ford, and Stellantis have expressed interest in expanding domestic production under these new rules. The policy shift is expected to benefit manufacturing in states including Michigan, Ohio, Indiana, and South Carolina.

Environmental groups and critics have raised concerns, noting that the rollback could increase fuel consumption by roughly 100 billion gallons through 2050 and potentially increase carbon dioxide emissions.

Entities

Donald Trump · Environmental Protection Agency · Ford · Ford Motor Company · General Motors · Joe Biden · Sean Duffy · Stellantis

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29 minutes ago