Trump rolls back Biden fuel economy standards — SkimNews
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- Trump announced Saturday on Truth Social that he approved new Corporate Average Fuel Economy (CAFE) standards, reversing Biden-era policies that would have required passenger cars and light trucks to reach roughly 50 miles per gallon by 2031.
- Biden's standards, established to incentivize EV production and sales, were the latest tightening of CAFE rules that have been periodically updated since the program was created in 1975.
- Trump framed the rollback as a win for automakers and consumers, writing that 'every Manufacturer, from General Motors to Ford to Stellantis, has called me wanting to build here, and now they can!'
- Transportation Secretary Sean Duffy previously indicated the new standards would be 'sharply lower' than Biden's, though the final figures have not been publicly detailed.
- Weaker fuel economy rules give automakers greater leeway to produce more pickup trucks and SUVs — which carry higher profit margins but worse gas mileage — while making EVs a less attractive business.
- General Motors has said it will continue making electric vehicles even as the regulatory tailwind for them diminishes.
Why it matters: Lowering the fuel economy bar tilts automakers' incentives away from EVs and back toward high-margin trucks and SUVs, which means slower EV market growth and more gasoline burned per mile on U.S. roads. Consumers may see lower sticker prices on gas-powered vehicles but also higher lifetime fuel costs.
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