US administration to lower vehicle fuel economy standards

The Trump administration plans to significantly reduce federal vehicle fuel economy standards, reversing regulatory frameworks established under the Biden administration. Transportation Secretary Sean Duffy announced that the new rules will aim for a fleetwide average of 34.5 miles per gallon by 2031, a substantial decrease from the previous target of 50.4 miles per gallon.

Speaking in Michigan, Duffy stated the shift is intended to align Detroit's manufacturing with consumer demand rather than federal mandates, noting, “We want Detroit to build cars that Americans want to buy — not cars that Democrats want Washington to build.”

The proposed standards would replace aggressive annual efficiency increases with much smaller increments of between 0.25 percent and 0.5 percent through 2031. While the National Highway Traffic Safety Administration (NHTSA) estimates the relaxed rules could reduce the price of a new vehicle by approximately $930, the agency also projects the change will lead to roughly 100 billion more gallons of fuel used through 2050, an increase in fuel costs by $185 billion, and a 5 percent rise in carbon dioxide emissions.