The Trump administration just delivered a massive win to Detroit automakers, slashing federal fuel economy standards from Biden's ambitious 50.4 miles per gallon target to just 34.5 MPG by 2031. The move wipes out an estimated $23 billion in consumer fuel savings while handing GM and Ford relief from hundreds of millions in penalty fees they've been paying for missing efficiency targets.
The Trump administration just handed Detroit's biggest automakers their early Christmas present. The National Highway Traffic Safety Administration announced it's rolling back Biden-era fuel economy standards that would have required cars to average 50.4 miles per gallon by 2031, dropping the target to a much more comfortable 34.5 MPG instead.
The timing couldn't be better for struggling automakers. GM has already shelled out $128.2 million in Corporate Average Fuel Economy penalties for 2016 and 2017 model years, while Stellantis - which owns Chrysler - has paid more than $590 million since 2016, according to Reuters reports. Both companies' leadership joined Trump in the Oval Office today for the announcement.
"We've just freed you up, so you're going to have a good day, you're going to have a good number of years," Trump told the assembled auto executives. Ford CEO Jim Farley was quick to respond: "Today is a victory of common sense and affordability."
But the math tells a different story for consumers. The Biden standards that are now being scrapped were projected to save Americans $23 billion in fuel costs - about $600 per vehicle owner over their car's lifetime, according to NHTSA's own estimates. The rules would have cut gasoline consumption by 70 billion gallons through 2050 and prevented 710 million metric tons of carbon dioxide emissions.
Trump claims his rollback will shave $1,000 off new car prices, though he offered no evidence for that figure. Clean energy advocates expect the opposite - higher fuel costs at the pump as automakers build less efficient vehicles.
The move represents the latest salvo in Trump's broader assault on environmental regulations. His administration has already eliminated EV tax credits, gutted energy efficiency standards, and rolled back pollution controls across multiple industries. Transportation Secretary Sean Duffy has been particularly aggressive, accusing the Biden administration of "illegally using" fuel economy rules to force EV adoption.
