In a move set to reshape the U.S. auto industry, President Donald Trump announced Saturday that he had approved new fuel economy standards, rolling back the stricter requirements put in place by the Biden administration. The key change? The 2031 target for average fuel efficiency in new cars and light trucks will drop from 50.4 miles per gallon (mpg), as previously set, to just 34.5 mpg—a reduction of more than 30 percent.
The new policy marks a dramatic reversal from the Biden-era push to increase fuel efficiency and accelerate the adoption of electric and hybrid vehicles. Under rules finalized in 2024, automakers were on track to boost their fleetwide average from 39.1 mpg to 50.4 mpg by 2031. Trump’s revised standards, if finalized as previously proposed, will require only 34.5 mpg for model year 2031 vehicles, a figure that signals a sharp turn away from electrification.
What’s Changing for Automakers and Consumers?
The Corporate Average Fuel Economy (CAFE) system, created by Congress in 1975, requires carmakers to meet average efficiency targets across all vehicles sold. Biden’s version of the rules was widely seen as a lever to push automakers—and consumers—toward electric vehicles (EVs). But on Saturday, Trump doubled down on his opposition to what he called the “EV mandate,” arguing that the new standards will lower car prices and spur domestic manufacturing.
Still, details on the final standards remain murky until Monday, when the official rule is expected to be released. Transportation Secretary Sean Duffy teased on social media that a “major victory for America’s auto workers is COMING MONDAY.” However, Congress last year gutted consumer tax incentives for EVs, and also eliminated fines for automakers that fail to meet fuel economy requirements—changes that have already dampened EV sales.
Mixed Reaction Amid High Gas Prices
The timing of the rollback comes as many U.S. drivers are already feeling the sting of gas prices topping $4 a gallon. Critics, like Atid Kimelman of the Natural Resources Defense Council, warn that weakening fuel standards will cost Americans more at the pump and benefit oil companies. Meanwhile, Trump and his supporters argue the changes will make cars more affordable and help U.S. manufacturing.
One thing is clear: Trump’s move marks one of the sharpest reversals of U.S. fuel economy policy in decades, with big implications for automakers, consumers, and the environment.
