Biden Administration's Fuel Efficiency Regulations Effectively Dismantled

U.S. President Donald Trump has approved fuel economy standards that effectively dismantle the fuel efficiency regulations put in place by former President Joe Biden's administration. This move follows his argument that the push for electric vehicle adoption forces companies into expensive technology investments.


On September 26 (local time), President Trump announced on social media platform Truth Social, "This is a significant day for American auto industry workers and car buyers," adding, "I have just approved new fuel economy standards that abolish the absurd electric vehicle mandate policies."


He further stated, "The new standards will eliminate waste from the car manufacturing process in the United States," and claimed that as a result, vehicle prices will decrease, allowing consumers to save thousands of dollars when purchasing cars.

Trump Approves Fuel Economy Standards to Abolish Electric Vehicle Mandates View original image

President Trump also argued that U.S. car manufacturers have suffered billions of dollars in losses due to regulations imposed by the Biden administration. He said, "Every manufacturer, from General Motors (GM) to Ford and Stellantis, has contacted us expressing their desire to produce vehicles in the U.S.," adding that more than 100 billion dollars is being invested in the U.S. automotive industry under the Trump administration.



This approval by President Trump appears to finalize the fuel economy regulation rollbacks introduced by the Trump administration at the end of last year. At that time, the administration proposed lowering the minimum Corporate Average Fuel Economy (CAFE) standard—which automakers are required to meet—for 2031 model vehicles, from 50 miles per gallon to 34.5 miles per gallon. The CAFE standard requires automakers to maintain a certain average fuel efficiency across their entire fleet; the higher the standard, the more likely companies are to increase sales of electric and hybrid vehicles.


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