The United States will significantly lower its fuel economy standards, as President Donald Trump’s administration continues to cut regulations on vehicle emissions.
The new fuel economy rules will require around 34 miles per gallon (55 kilometres per 4 litres) for passenger cars by 2031. Standards under the Joe Biden administration had required an increase to 50 miles (80 km) per gallon by 2031.
“This administration understands the freedom of every American family starts with affordable cars,” said Transportation Secretary Sean Duffy.
“That’s why our new standards will make that dream more achievable by letting auto manufacturers produce the cars that fit families' needs at a lower price.”
Companies, including Ford and Stellantis, have supported the new standards, with Ford CEO Jim Farley and Stellantis CEO Antonio Filosa present when Trump announced the change in the Oval Office today.
The Department of Transportation claimed that lowering these standards will save consumers US$109 billion over the next five years, and $1,000 on the average cost of a new vehicle.
However, a 30% increase in fuel economy across vehicles made from 2003 to 2021 did not cause a significant increase in inflation-adjusted car prices, a Consumer Reports analysis found.
The Trump administration has sought to roll back regulations on pollution from internal combustion engine vehicles. In July, the U.S. cut civil penalties for automakers that violate these fuel economy standards to $0.
Trump also lowered requirements to reduce tailpipe emissions in August, and in June rescinded California’s mandate for new cars sold in the state to be zero-emissions by 2035. The U.S. ended its $7,500 tax credit for new electric vehicle purchases in September.
The previous fuel standards would have prevented more than 710 million metric tonnes of carbon dioxide emissions by 2050, the National Highway Traffic Safety Administration said at the time.
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