Trump Says New Fuel Economy Standards Will Lower Car Prices
President Donald Trump said he approved new fuel economy standards and characterized them as ending the previous administration's push toward electric vehicles. He claimed the rules would reduce car prices and increase U.S. auto manufacturing, but did not release details. Transportation Secretary Sean Duffy teased a major announcement for auto workers on Monday.
Trump announced via Truth Social that he had approved revised fuel-economy rules, saying they would undo what he describes as the prior administration's EV mandate. No final rule or specifics accompanied the statement. Transportation Secretary Sean Duffy hinted at a Monday announcement for auto workers.
Earlier federal proposals would have set a fleetwide average near 34.5 mpg by 2031, versus roughly 50.4 mpg under Biden-era targets. The Biden rules aimed to cut fuel use and emissions and encourage efficient and electric vehicles, though they did not require consumers to buy EVs. An earlier NHTSA estimate projected about $930 lower upfront vehicle costs, alongside higher fuel consumption and emissions.
If finalized, lower fuel-economy targets could affect car buyers, automakers, autoworkers, and energy markets. Buyers may see lower sticker prices but potentially higher fuel costs over time. Automakers could gain flexibility to build larger or less efficient models, while workers in manufacturing states may see investment shifts. Environmental and public-health outcomes may depend on actual rules and consumer choices. Since details are absent, effects remain uncertain.