President Donald Trump announced on Saturday that he had approved new fuel economy standards, reversing policies implemented under former President Joe Biden that aimed to increase electric vehicle (EV) adoption in the U.S.
The announcement, made via a post on Truth Social, did not include specific details about the new standards, nor had the administration released a final rule at the time of the post. The White House and Department of Transportation did not immediately respond to requests for comment.
Core policy reversal
The new standards mark a shift from the Biden administration’s Corporate Average Fuel Economy (CAFE) rules, which required automakers to achieve approximately 50 miles per gallon for passenger cars and light trucks by 2031. The Biden-era policies were designed to incentivize the production and sale of electric vehicles. Trump’s new standards are expected to be significantly lower, according to prior administration proposals.
Trump framed the change as beneficial for both automakers and consumers. In his Truth Social post, he stated: “These new Standards will take the waste out of building cars in America. That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car.” He also claimed that executives from General Motors, Ford, and Stellantis had expressed interest in expanding U.S. manufacturing under the new rules.
Industry and political reactions
Transportation Secretary Sean Duffy had previously indicated that the new standards would be sharply lower than those set by the Biden administration. Earlier proposals from the administration suggested reducing future fuel economy requirements for automakers. Duffy also posted on X (formerly Twitter) that “a major victory for America's auto workers is COMING MONDAY,” though he did not specify whether this referred to the fuel economy standards.
The regulatory change fulfills a campaign promise from Trump to rescind policies that encouraged or incentivized electric vehicle production. Automakers like General Motors have stated they will continue producing EVs regardless of the new standards, though weaker fuel economy rules may reduce their relative attractiveness compared to traditional vehicles.
Implications for automakers and consumers
Weaker fuel economy standards could allow automakers to produce more pickup trucks and SUVs, which are typically more profitable than smaller cars but have lower gas mileage. The policy shift may also reduce pressure on automakers to prioritize EV development, though some companies have indicated they will maintain their EV production targets.
The administration has not yet released the finalized standards, and the full impact on vehicle pricing, manufacturing, and environmental goals remains unclear. The announcement follows a broader effort by the Trump administration to reshape U.S. auto policy, including efforts to encourage domestic manufacturing and reduce regulatory burdens on automakers.