Trump Kills Biden's EV Mandate, Slashes Mileage Targets for America's Next Cars
The Transportation Department is set to formally finalize new fuel-economy standards Monday that cut the 2031 fleet target from north of 50 mpg to 34.5, unwinding one of the Biden administration's signature climate rules.
President Trump said Saturday he has approved new fuel economy standards that scrap the electric-vehicle-pushing mandate put in place under President Biden, with the Transportation Department expected to formally finalize the rule Monday.
Under the outgoing Biden-era rule, automakers were required to hit a fleetwide average of roughly 50 miles per gallon for passenger cars and light trucks by the 2031 model year, a target designed to accelerate the shift toward electric vehicles, according to CNBC. The incoming rule cuts that 2031 target down to 34.5 mpg fleetwide, a sharp retreat from the trajectory set under the previous administration.
The standards, known as Corporate Average Fuel Economy or CAFE rules, have been periodically updated by federal regulators since 1975 and apply to nearly every new car and light truck sold in the United States, according to Al Jazeera.
TAKES THE WASTE OUT OF BUILDING CARS IN AMERICA
Trump wrote on Truth Social that the new standards will "take the waste out of building cars in America," predicting the change will translate into lower prices for families shopping for new vehicles, per Benzinga.
Fulfilling a campaign promise
The move fulfills a campaign pledge to unwind federal policies that incentivized electric vehicle production, and marks one of the more consequential rollbacks of Biden-era climate policy since Trump returned to office. Automakers had been designing multi-year product plans around the tighter 2031 targets, and the sudden loosening is expected to reshape how much of their U.S. lineups need to be electrified or hybridized in the years ahead.
Environmental groups have previously argued that looser fuel economy standards mean higher long-term gasoline costs for consumers and increased tailpipe emissions, even if sticker prices on new vehicles ease in the short term. The Transportation Department has not yet published the full text of the rule ahead of Monday's expected finalization.
The rollback lands the same week gasoline prices have become a flashpoint on the campaign trail, with diesel prices climbing past $6.50 a gallon in some markets and putting pressure on Republican candidates ahead of the midterms.