Focus on the BIG picture.
Thursday, Dec 04, 2025
Outside the box.
Trump Moves to Slash Fuel-Efficiency Rules for Cars and Trucks
Administration proposes steep rollback of mileage standards, aiming to ease costs for automakers and buyers while critics warn of higher pollution and fuel bills
The administration of on Wednesday unveiled a regulatory proposal to sharply weaken fuel-efficiency requirements for cars and light trucks, terminating stricter targets set under the previous administration and resetting the fleetwide target to roughly 34.5 miles per gallon by 2031.
Under the existing standard, finalized in 2024, automakers were expected to raise average vehicle fuel economy towards about 50.4 miles per gallon by 2031. The new draft from the (NHTSA) would instead roll back those requirements and institute only minimal annual increases through the end of the decade.
Officials argue the change will reduce manufacturing and purchase costs by up to nine hundred U.S. dollars per vehicle, expand consumer choice and ease pressure on automakers struggling with rising input costs and slowing demand.
Several major automakers — including and — backed the proposal, saying it better reflects current market realities and restores flexibility for gasoline and diesel vehicles.
Environmental and public-health advocates sharply criticised the plan.
They warn it would substantially increase gasoline consumption, raise long-term fuel costs for drivers, and significantly worsen greenhouse-gas emissions and air pollution — undermining climate goals and undoing decades of progress in raising vehicle efficiency.
In addition, the proposal seeks to phase out the system of fuel-economy credit trading among automakers by 2028 — a move that could disadvantage electric-vehicle–focused firms reliant on selling credits to less efficient producers.
Supporters of the existing standards say eliminating that mechanism will further discourage investments in cleaner-running and electric vehicles.
The regulatory shift signals a major pivot in U.S. energy and transport policy: after years of tightening efficiency rules under the previous administration, the federal government is now prioritising near-term affordability and industrial flexibility over long-term environmental and consumer cost savings.
Under the existing standard, finalized in 2024, automakers were expected to raise average vehicle fuel economy towards about 50.4 miles per gallon by 2031. The new draft from the (NHTSA) would instead roll back those requirements and institute only minimal annual increases through the end of the decade.
Officials argue the change will reduce manufacturing and purchase costs by up to nine hundred U.S. dollars per vehicle, expand consumer choice and ease pressure on automakers struggling with rising input costs and slowing demand.
Several major automakers — including and — backed the proposal, saying it better reflects current market realities and restores flexibility for gasoline and diesel vehicles.
Environmental and public-health advocates sharply criticised the plan.
They warn it would substantially increase gasoline consumption, raise long-term fuel costs for drivers, and significantly worsen greenhouse-gas emissions and air pollution — undermining climate goals and undoing decades of progress in raising vehicle efficiency.
In addition, the proposal seeks to phase out the system of fuel-economy credit trading among automakers by 2028 — a move that could disadvantage electric-vehicle–focused firms reliant on selling credits to less efficient producers.
Supporters of the existing standards say eliminating that mechanism will further discourage investments in cleaner-running and electric vehicles.
The regulatory shift signals a major pivot in U.S. energy and transport policy: after years of tightening efficiency rules under the previous administration, the federal government is now prioritising near-term affordability and industrial flexibility over long-term environmental and consumer cost savings.
