The Trump administration has taken its first major step toward undoing Biden-era fuel economy regulations. On his first day as Transportation Secretary, Sean Duffy signed an order directing the National Highway Traffic Safety Administration (NHTSA) to re-evaluate fuel economy standards that had been set to take effect through the end of the decade.
These standards, originally implemented under President Biden, required passenger cars to achieve an average of 65 miles per gallon by 2031, while light trucks and SUVs would need to reach 45 miles per gallon. The goal was to push automakers toward producing more fuel-efficient and electric vehicles. However, Duffy has argued that the rules impose undue costs on both manufacturers and consumers.
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Duffy’s rationale for the rollback
In a memo to the NHTSA, Duffy outlined his concerns with the existing standards. He pointed to the ample availability of domestic oil and biofuel feedstocks (e.g. corn used for producing ethanol), questioning whether such stringent fuel economy rules are necessary. He also expressed skepticism about the long-term viability of electric vehicle mandates, arguing that they place an unnecessary burden on automakers and limit consumer choice.
Duffy’s stance aligns with President Trump’s broader goal of reducing regulatory constraints on industries. In his memo, he claimed that the current fuel economy standards effectively force automakers to prioritize electric vehicles at the expense of traditional combustion-engine models.
“The purpose of the CAFE program is not to force the electrification of the nation’s auto fleets,” Duffy’s memo states. “It is to establish the maximum average fuel economy standards that are realistic and feasible for fleets of vehicles of all sizes and uses that run on combustible liquid fuels like gasoline and diesel fuel and that the auto industry is capable of producing and selling in sufficient volume to meet the real-world market demand of American buyers.”
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The potential impact on consumers and automakers
Automakers have had mixed reactions to the Biden administration’s fuel economy standards. While some support the push for greener vehicles, others argue that the high costs of compliance make new cars more expensive. Duffy’s memo suggested that overly aggressive fuel efficiency targets could make vehicles unaffordable for the average American family and small businesses.
Duffy also argued in his memo that stringent regulations could lead to unintended safety concerns. By making new vehicles more expensive, consumers may hold onto older cars longer, which he argued could lead to increased highway fatalities due to outdated safety technology.
More stringent fuel economy standards may be a double-edged sword, driving up vehicle prices but also saving drivers fuel costs in the long term. Tightening fuel standards on modern vehicles have saved Americans $9,000 compared to vehicles produced in 2001, according to a new study from Consumer Reports. That same study estimates that drivers would see an additional $6,000 in fuel savings from 2029 model-year vehicles as long as current fuel economy standards are kept in place.
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Political and industry reactions
The rollback effort has already sparked political controversy. While many Republicans and industry leaders support revisiting the standards, environmental advocates and Democratic lawmakers see the move as a setback for climate goals. Some argue that weakening fuel economy regulations could slow progress toward reducing greenhouse gas emissions and energy independence.
Final thoughts
The re-evaluation of these regulations is set to begin immediately, with the NHTSA expected to conduct a thorough review of fuel economy targets for models from 2022 onward. Whether this move will lead to significantly lower standards or merely a revision remains to be seen, but it marks a clear shift in the federal government’s approach to vehicle emissions and fuel efficiency under the Trump administration.