The Trump administration reduces fuel efficiency standards for new cars and trucks through 2031

The administration of US President Donald Trump intends to sharply reduce fuel efficiency standards for new cars and trucks until 2031, in a move that reflects more stringent rules approved by the administration of former President Joe Biden, and opens the way for automakers to introduce more large, less fuel-efficient vehicles.

Trump said on Saturday that he approved the new standards, which the US Department of Transportation is scheduled to officially unveil on Monday. The US President presented the move as a way to reduce new car prices and support automakers and American workers.

The Biden administration had raised fuel efficiency requirements with the aim of reducing oil consumption and encouraging automobile companies to increase the production and sale of electric and hybrid cars. Under those rules, passenger cars and light trucks would have to reach about 50 miles per gallon by 2031.

In contrast, the Trump administration proposed reducing the average efficiency of the car fleet to 34.5 miles per gallon by 2031, compared to 50.4 miles per gallon according to the Biden administration’s rules.

The US Department of Transportation estimates that relaxing standards will reduce the average cost of a new car by about $930, but in return, it will lead to an increase in fuel consumption by about 100 billion gallons until 2050, and an increase in fuel spending by about $185 billion, in addition to an increase in carbon dioxide emissions by about 5 percent.

The move comes at a time when American drivers are facing a sharp rise in fuel prices since the outbreak of the US-Israeli war on Iran at the end of February, adding an economic dimension to the debate about the efficiency of vehicles and their operating costs.

The Biden administration had raised fuel efficiency requirements for cars by 8 percent annually for the 2024 and 2025 models, by 10 percent for 2026, then by 2 percent annually from 2027 to 2031.

In December, the Trump administration proposed retroactively amending the model efficiency standard to lower levels, before raising it by rates ranging between 0.25 and 0.5 percent annually until 2031.

The new rules would give car companies more room to sell less efficient vehicles, including pickup trucks and sport utility vehicles, which typically earn higher profit margins than smaller cars, but consume more fuel.

The relaxed rules also reduce regulatory incentives for automakers to expand into electric vehicles, although some companies have confirmed their continued investment in this sector.

US Secretary of Transportation, Sean Duffy, said that the expected announcement on Monday represents a “major victory” for workers in the American auto industry, while the administration has not yet finally revealed all the details of the new standards.

Under Biden's rules, tightening fuel efficiency standards was part of a broader policy aimed at reducing fossil fuel use and greenhouse gas emissions, supporting the auto sector's transition toward clean energy and strengthening the United States' position in low-emission energy and vehicle technologies.