Trump administration cuts fuel economy standards for cars and light trucks: Here’s what’s changing | Today’s news
The Trump administration on Monday unveiled revised fuel economy standards for automakers that would ease requirements for gasoline cars and light trucks, with the industry-wide average estimated at 34.9 miles per gallon in 2031, down from 50.4 miles per gallon under rules put in place by the Biden administration.
The rules were announced shortly after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, a development that sent oil prices soaring.
Fuel economy regulations determine how far vehicles must travel per gallon of gasoline. The latest changes support Trump’s pledge to roll back policies that his administration says have encouraged or encouraged the production and adoption of electric vehicles.
Transportation Secretary Sean Duffy said the administration had made good on Trump’s promise to roll back what he described as an illegal requirement that pushed automakers to make more expensive electric vehicles that many American consumers didn’t want.
In a statement emphasizing affordability, safety and investment in America’s auto workers, Duffy said, “Thanks to President Trump’s leadership, we finally ended an illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn’t want.
The National Highway Traffic Safety Administration (NHTSA) estimated in December that the revised standards will result in an average fuel economy of around 34.5 miles per gallon.
NHTSA says the new fuel rules balance affordability, safety and energy savings
NHTSA Administrator Jonathan Morrison said the new rule will bring greater integrity to the nation’s fuel economy program by balancing the affordability of energy-efficient vehicles while improving road safety.
He said lower vehicle prices could make newer, safer cars more affordable for American families, while more flexible standards would give automakers more room to develop vehicles that match consumer demand. Morrison also praised the agency’s engineers, economists and lawyers for their work in finalizing the rule.
GM technology costs to drop by $20.4 billion by 2031: US
General Motors is expected to save $20.4 billion in technology costs by 2031 following the Trump administration’s decision to significantly reduce fuel economy requirements, the U.S. Department of Transportation said.
Across the auto industry, the administration estimates the revised standards will reduce technology-related costs by $60.6 billion by 2031, or about $1,289 per vehicle. Under fuel economy rules implemented in 2024, GM’s technology costs were projected to reach $31.7 billion over the same period.
Trump says relaxed mileage rules will lower auto costs and boost U.S. manufacturing
On Saturday, Trump said on his Truth Social account that the relaxed mileage requirements “take the waste out of building cars in America” and save families “thousands on a new, beautiful, safe car” while encouraging more vehicle production in the United States.
