Trump Administration to Announce Rollback of Fuel Economy Standards
Washington, D.C., Wednesday, 3 December 2025.
The Trump administration plans to ease fuel economy standards, potentially affecting environmental policies and benefiting automakers by lowering regulatory costs. This move may influence vehicle affordability.
Significant Changes Proposed
The Trump administration is preparing to announce a significant rollback of fuel economy standards initially set by the Biden administration. This proposal will be unveiled at a White House event on December 3, 2025, with key executives from major automakers such as Ford Motor, General Motors, and Stellantis expected to attend [1][2]. The new plan aims to reduce the fuel efficiency target for passenger vehicles to 7.0 L/100 km (33.6 mpg) by 2026, a stark contrast to the previous target of 5.5 L/100 km (42.0 mpg) set by the Obama administration for 2025 [2].
Economic Impact on Automakers
The proposed rollback is intended to alleviate regulatory costs for automakers, which could potentially result in lower vehicle prices for consumers. This is part of a broader strategy by the Trump administration to revive the domestic automobile industry, which includes dismantling policies that were perceived as an ‘EV mandate’ by Republicans [3][4]. The rollback is projected to save automakers billions in regulatory costs, and President Trump has expressed optimism that this will lead to increased affordability and sales in the auto sector [4].
Environmental Concerns and Criticism
The proposed changes have sparked significant criticism from environmental groups who argue that weakening the fuel economy standards undermines efforts to combat climate change. These groups emphasize the potential environmental benefits of the previous standards, which were estimated to reduce gasoline consumption by 64 billion gallons and cut emissions by 659 million metric tons, offering net benefits of $35.2 billion for drivers [1][5]. This policy shift is seen as a setback for environmental and public health efforts according to critics [2].
Political and Industry Reactions
The rollback aligns with the Trump administration’s broader deregulatory agenda, which has been met with mixed reactions across the political spectrum. While the automotive industry may welcome the reduced regulatory burden, environmental advocates and some political leaders express concerns over the long-term implications for climate policy. The administration’s focus on boosting the automotive sector reflects a prioritization of economic recovery over environmental objectives [2][3].