Trump Cuts Biden-Era Fuel Economy Targets
President Donald Trump announced a rollback of Biden-era fuel economy standards. The proposed change would lower the 2031 fleet average target from 50.4 miles per gallon to 34.5 miles per gallon. A government analysis warned the move could raise gas costs and weaken resilience to oil price shocks.
Federal fuel-economy rules date to the 1970s, when soaring gasoline prices, disrupted oil supplies and Middle East tensions pushed Washington to require more miles per gallon. The first CAFE standards followed the 1973 oil embargo under President Gerald Ford, aiming to cut reliance on foreign fuel.
The Biden-era target sought a 50.4 mpg fleet average by 2031. The proposed Trump rollback would set 34.5 mpg, below the 2024 U.S. fleet average. A required government analysis warned of higher annual gas costs and reduced resilience to oil-price shocks.
If finalized, lower targets could affect car buyers, automakers and autoworkers. Drivers may see lower upfront vehicle prices but potentially higher fuel spending, especially if oil prices spike. Manufacturers could face less pressure to improve efficiency, which may slow emissions reductions and EV adoption. The rule’s energy-security implications could matter during global supply disruptions. These outcomes remain uncertain and depend on market and policy responses.