The Trump administration finalized the rollback of a significant fuel economy standard for vehicles on Monday, a decision critics argue will increase climate-warming pollution, health issues, and fuel costs.
The National Highway Traffic Safety Administration, part of the Department of Transportation, released new Corporate Average Fuel Economy standards, significantly decreasing fuel efficiency requirements for new passenger cars and light trucks for the 2022-2031 period.
The Department of Transportation estimates these new standards will result in an industry fleet average of about 34.9 miles per gallon for model year 2031 vehicles. Previously, a 2022 rule under the Biden administration required around 50.4 miles per gallon, encouraging investment in electric vehicles.
The DOT stated this change provides automakers with flexibility, reduces new vehicle costs, and stimulates car sales. The Trump administration labeled the Biden policies an EV “mandate.”
“Thanks to President Trump’s leadership, we have ended the illegal mandate forcing automakers to produce costly electric vehicles that American families don’t want,” said Transportation Secretary Sean Duffy.
The Alliance for Automotive Innovation, representing auto manufacturers, supported the new standards. “The previous administration effectively mandated a switch to electric vehicles that didn’t align with market realities and demand,” said Alliance President John Bozella.
The changes could lead to less efficient vehicles producing more greenhouse gases and pollutants, which studies show are linked to 9 million deaths annually worldwide.
“Today’s rule to weaken standards will increase pollution, harm health, and accelerate climate change,” stated American Lung Association President Harold Wimmer.
Transportation contributes to about 28 percent of U.S. greenhouse emissions, surpassing electric power generation (25 percent) and industry (23 percent), per the Environmental Protection Agency.
Monday’s rule formalized Trump’s December announcement to reduce fuel efficiency standards. Meanwhile, the conflict in Iran has driven gas prices up to an average of $4.48 per gallon.
Jason Schwartz, from New York University’s Institute for Policy Integrity, said the rollback increases fuel costs and consumer vulnerability to gas price changes.
“The 2024 standards were projected to save consumers $80 billion in fuel costs and reduce $125 billion in climate damages,” Schwartz said. “Now, those savings are gone, and stretched households will bear the cost.”
The Institute for Policy Integrity reports more than $17 billion in consumer savings are at risk due to these rollbacks.
Environmental and health advocates plan to challenge the new standards. “Americans need relief from high costs, but instead Trump is allowing automaker pollution, with families footing the bill,” said Katherine García, director of the Sierra Club’s Clean Transportation Program.
Dan Becker from the Center for Biological Diversity noted the previous standard was “the biggest step any nation took to save gas, money, and reduce pollution.”
“Trump’s rollbacks are hurting consumers facing high gas prices,” Becker said. “This decision benefits Big Oil and Auto, posing short- and long-term risks to health, the planet, and U.S. automakers lagging behind global clean car advancements.”
The rollback coincides with the global rise of Chinese electric vehicles, including in Argentina, where BYD overtook Tesla as the largest electric vehicle producer in 2025.
“Trump’s actions risk domestic car competitiveness, raise consumer costs, and harm climate efforts,” Becker added. “These rollbacks accelerate us toward a less healthy, poorer America.”
Original Story at insideclimatenews.org