Trump announces new fuel economy standards, vows to ‘terminate’ Biden-era EV rules

WASHINGTON, DC: President Donald Trump on Saturday, September 26, said he had approved new fuel economy standards that would reverse stricter policies adopted under former President Joe Biden.

Trump said the changes would lower vehicle costs, reduce regulatory burdens on automakers and encourage more auto manufacturing in the United States. The announcement came as his administration moved toward sharply lower fuel economy requirements through 2031.

Trump says new fuel economy standards will lower costs

Trump announced the policy in a post on Truth Social, describing it as a major change to the Biden-era approach to fuel economy and electric vehicles. He also criticized former Transportation Secretary Pete Buttigieg while arguing that the previous policies increased costs for automakers and consumers.

Trump framed the changes as a benefit to American auto workers and car buyers, saying they would allow manufacturers to produce vehicles based more closely on consumer demand.

“Big day for American auto workers and car buyers! I have just approved new Fuel Economy Standards that terminate Sleepy Joe Biden and Pete Boot-edge-edge's ridiculous EV Mandate," Trump posted. "The Dumocrats cost our Great Auto Manufacturers Billions, forced Americans into cars they never wanted, and wasted Billions on Chargers that were never built."

Trump then said the new standards would reduce what he characterized as unnecessary costs associated with vehicle production. He also claimed the changes would result in lower prices for consumers.

"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, Far better than the Environmental Monsters that we were building heretofore. Every Manufacturer, from General Motors to Ford to Stellantis, has called me wanting to build here, and now they can!"

Trump also said more than $100 billion was being invested in American auto manufacturing under his administration and pointed to Michigan, Ohio, Indiana and South Carolina as states where he said plants and jobs were returning. He also thanked Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick for their work on the administration's auto policy.

New fuel economy standards would reverse Biden-era targets

The announcement followed earlier plans from Duffy to significantly lower future Corporate Average Fuel Economy, or CAFE, requirements. Under Biden-era standards, automakers would have been required to increase fuel efficiency substantially, with a fleet-wide average of about 50.4 miles per gallon by 2031.

In December, Duffy announced plans to reset the CAFE requirements to 34.5 miles per gallon for vehicles made by 2031. In August, he described the administration's approach as a “common-sense fuel economy standard,” saying the goal was for Detroit to build vehicles Americans wanted to purchase.

The CAFE standards, established in 1975, have been periodically updated to increase vehicle fuel efficiency. Biden's administration increased required fuel efficiency by 8% annually for model years 2024 and 2025, 10% for 2026 and 2% annually from 2027 through 2031.

Pete Buttigieg criticizes Trump's new fuel economy standards

The policy drew criticism from Buttigieg, who argued that lowering fuel economy standards would increase costs for Americans at the pump.

However, Duffy touted the policy in a post on X, stating that “a major victory for America's auto workers is coming Monday.”