This would be a major reversal of fuel economy regulations that administration laid down under President Biden’s leadership. Last week the White House released a big new proposal. It would roll back Biden’s moves to increase the fuel efficiency of our vehicles and tackle carbon emissions. This proactive decision will lighten financial burdens on future car buyers. It’s not just climate denialism—it wants to protect and expand the oil industry, too.
The Biden administration had set ambitious standards designed to decrease the nation’s reliance on foreign oil, assist car owners with fuel costs, and mitigate pollution. Their blueprint would reduce more than 700 million metric tons of carbon dioxide emissions by 2050. Car owners would save an average of nearly $600 on fuel costs over their vehicles’ lifetimes.
President Trump considered these standards to be unrealistic and harmful to consumers. He stated, “They were horrible what they were doing to costs – and actually making the cars much worse.” The Trump administration argues that the old guidelines imposed onerous cost burdens on manufacturers. They claim that these increased costs would end up being paid by consumers anyway.
Under the revised proposal, automakers will have more leeway to decide what technologies to pursue. These updated standards are weaker than those set by the Biden administration. The previous federal policy mandated a target for automakers to achieve an industry average fuel economy of about 50 miles per gallon. They had to do this fleet-wide by the MY 2031. Today, the industry average is just under 27 miles per gallon.
Trump’s administration is banking on this rollback to lower the cost of cars by about $1,000 for purchasers. As a result, the big three U.S. automakers—Stellantis, General Motors, and Ford—now have the worst fuel-saving fleets in the industry. This newly combative and focused approach would give these manufacturers much more room to engage in producing vehicles that are better in line with what consumers want.
Even Ford CEO Jim Farley is on board with the rules. He thinks they’re right on the money in terms of consumer demand, and he refers to the shift as “the right move for a ton of reasons.” His endorsement is a sign that many industry leaders are starting to believe the same thing. They believe that relaxing these regulations would increase revenue and improve margins.
As such, critics of the new regulations are raising alarms about possible environmental damage. Kathy Harris, director of clean vehicles at the Natural Resources Defense Council, expressed her disapproval, stating, “Gutting fuel economy under the pretense of safety and affordability is a cruel joke for American drivers.” Harris pointed out that the rollback is largely done in the interests of the oil industry. First and foremost, it does nothing to address the pressing crisis of climate change.
The Trump administration’s rationale for easing the rules was primarily financial. This is yet another reversal of Biden-era policies that sought to encourage electric vehicle adoption and reduce greenhouse gas emissions. Thus the battle continues. Stakeholders from all sectors are eagerly anticipating how these changes will benefit consumers and the environment.