President Donald Trump announced on Wednesday that he would relax the automobile fuel efficiency regulations implemented during the previous Joe Biden administration.
The Washington Post (WP) reports that Donald Trump revealed plans at the White House to lower the average fuel efficiency target for 2031 model year vehicles from 50.4 miles per gallon (about 17.8 km/L) to 34.5 miles per gallon (about 12.2 km/L). Currently, new vehicles sold in the U.S. average about 28 miles per gallon (about 9.9 km/L).
In a meeting attended by executives from the Big Three U.S. automakers—Ford, General Motors, and Stellantis—Trump signed an executive order repealing the fuel efficiency regulations established during the Biden administration.
The White House claims this measure will save American households 109 billion USD over the next five years and could reduce the average price of new vehicles by 1,000 USD.
The auto industry immediately welcomed the decision. Ford Chief Executive Officer (CEO) Jim Farley, who attended the event, hailed it as a victory for common sense and economic efficiency. Stellantis CEO Antonio Filosa also expressed satisfaction, saying he was pleased that fuel efficiency regulations would now align with actual customer demand.
Mike Sommers, president of the American Petroleum Institute (API), praised the decision as a win for American drivers and a sensible approach that recognizes today’s market realities.
Environmental groups, however, pushed back. Dan Becker, director of climate and transportation at the Center for Biological Diversity, warned that relaxed regulations would lead automakers to produce more gas-guzzling, polluting vehicles, resulting in consumers spending more at the pump.
Gina McCarthy, former Administrator of the Environmental Protection Agency (EPA) under the Biden administration, cautioned that this move would slow the transition to electric vehicles, ultimately harming the U.S. automotive industry.
This regulatory rollback aligns with the Trump administration’s pro-internal combustion engine and anti-electric vehicle (EV) stance. Trump has already eliminated the federal tax credit of up to 7,500 USD for new EV purchases and nullified California’s plan to ban new internal combustion engine vehicle sales by 2035.
However, industry insiders express significant concerns about policy uncertainty. They argue that the pendulum-like swings in auto regulations with each administration change make long-term investment planning challenging.
Rich Gold, a lobbyist at law firm Holland & Knight, criticized the situation to WP, saying that the auto industry needs to plan on a 10-year horizon, but it’s struggling to manage the current chaos and uncertainty. General Motors, which once pledged to sell only EVs by 2035, has recently shifted billions in investments back to internal combustion engine vehicles.