The Trump administration is preparing to unveil new fuel economy standards on Wednesday, marking a major reversal of the rules put in place by former President Joe Biden. According to sources cited by Reuters, the White House will officially announce the revised standards during a 2:30 p.m. ET event in the Oval Office.
Executives from Ford, General Motors, and Stellantis are expected to attend the announcement, signaling strong industry interest in the policy shift.
What is being rolled back?
The Biden administration had required passenger cars and light trucks to reach an average fuel efficiency of about 50 miles per gallon by 2031.
The standards were designed to accelerate the shift toward electric vehicles (EVs) in the United States.
However, since returning to office, President Donald Trump has consistently pushed to dismantle federal EV-support policies, aligning with his broader agenda of reversing Biden-era environmental regulations.
Oil industry backing
The American Petroleum Institute, a major oil and gas lobbying group, has urged the administration to repeal Biden’s rules. The group argues that the standards effectively aim to phase out traditional liquid-fuel vehicles in favor of electric ones.
Background
Fuel economy rules in the United States fall under the Corporate Average Fuel Economy (CAFE) standards, first established in 1975. Over the decades, the standards have been tightened multiple times to improve vehicle efficiency and reduce emissions.
Trump’s new proposal is expected to significantly lower the long-term fuel efficiency targets, altering the trajectory of U.S. vehicle standards for years to come.
