Trump weakens US fuel-efficiency standards for cars and trucks
What's the story
The US Department of Transportation has finalized its decision to roll back fuel efficiency standards for cars and trucks. The move is being described as "among the largest deregulatory actions under the second Trump Administration." The new rule comes as a major blow to Biden-era standards, which aimed for an average fleet fuel economy of 81km per gallon (4.5 liters) by model year 2031.
Rule details
Automakers welcome new rule, but consumer advocacy groups slam it
The Trump administration's new rule sets a much lower target of 56km per gallon, only slightly higher than the previous goal of 48km per gallon for model year 2024.
The move has been welcomed by automakers but has drawn criticism from consumer advocacy, health, and environmental groups who argue that weaker fuel economy standards will lead to higher costs at the pump and increased healthcare expenses due to air pollution-related health issues.
Cost savings
Critics dispute potential consumer savings
The Trump administration claims its plan could save consumers $1,300 on the average cost of a new vehicle and $138 billion over five years.
However, these figures have been disputed by critics who say the rollback will increase gasoline use and pollution, leading to higher costs for consumers at the pump and in healthcare.
The American Lung Association's president and CEO Harold Wimmer said there is no reason to weaken standards that are technologically feasible and directly benefit air quality.
Rule requirements
New rules vs Biden-era standards
The updated Corporate Average Fuel Economy (CAFE) standards require automakers to make their new passenger car and truck fleets up to 1% more fuel efficient each year, with a target of 56km per gallon for model year 2031.
This is a significant reduction from the Biden-era rules that mandated an annual 8% increase in fuel efficiency for model years 2024 and 2025, 10% for 2026, and 2% annually from 2027 to 2031.
Defense
Trump administration defends new rules
The Trump administration has defended the new rules as measures to make cars more affordable.
US Transportation Secretary Sean Duffy said the changes are aimed at delivering relief to families and reviving American manufacturing.
President Donald Trump also weighed in on the matter, saying these new standards would reduce waste in car production and lower prices, saving families thousands on a new vehicle.