1 of 4 | President Donald Trump announces changes to fuel economy standards that he said will save consumers a combined $109 billion over the next five years during a press conference at the White House on Wednesday. Photo by Will Oliver/UPI | License Photo
President Donald Trump on Wednesday announced plans to lower fuel-economy and emissions standards imposed by the Biden administration.
The president spoke on the matter at 2:30 p.m. EST from the Oval Office with executives from Ford, General Motors and Stellantis in attendance, Bloomberg and The New York Times reported.
He proposed lowering President Joe Biden’s fuel-economy standards from an average of 50 miles per gallon by 2031 for new vehicles to an average of 34.5 mpg, The Washington Post reported.
The federal government estimated new vehicles sold in the United States averaged 28 mpg in 2024.
Trump called the Biden administration’s fuel-economy standards “unrealistic” targets that “effectively resulted in an electric vehicle mandate,” the White House announced in a fact sheet.
He also said his administration will cancel Environmental Protection Agency regulations that would limit the amount of greenhouse gases emitted by vehicles.
The president presented his plan as a “win for American families and automakers” and said it will save U.S. consumers $109 billion over the next five years by lowering the cost of buying new vehicles by an average of $1,000 for each one sold.
He also positioned it as a win for domestic automakers and told Ford Chief Executive Officer Jim Farley that his people “were coming at me all the time” to lessen the Biden administration’s rules.
“These rules are going to allow the automakers to make vehicles that Americans want to purchase, not vehicles that Joe Biden and [former Transportation Secretary Pete] Buttigieg want them to build,” Transportation Secretary Sean Duffy told media.
“As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities,” Farley told Fox News.
“We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability,” he added. “This is a win for customers and common sense.”
Former President Barack Obama raised fuel standards during his time in office before Trump lowered them during his first term. Biden raised them by 8% for 2024 and 2025 models and 10% for 2026 models.
Trump has said it’s not feasible to meet those stricter restrictions without a widespread switch to electric vehicles.
At the start of his second term, Trump cut subsidies and other incentives encouraging people to buy EVs. Meanwhile, the Republican-controlled Congress has ditched the federal tax credits for those buying electric vehicles.
Trump hinted at Wednesday’s announcement on Tuesday during his final cabinet meeting of the year.
“We’re bringing back the automobile business,” he said from the cabinet room. “I think we’ll be bigger than we’ve ever been in the auto business.”
The proposed rule changes require approval by the respective federal departments and agencies to take effect.
This week in Washington
Senate Majority Leader John Thune, R-S.D., speaks during a press conference after the weekly Senate GOP caucus luncheon at the U.S. Capitol on Tuesday. Photo by Bonnie Cash/UPI | License Photo
