Trump Approves Fuel Economy Rollback, Easing Efficiency Mandates for Automakers

President Donald Trump announced Saturday that he has approved new fuel economy standards, rolling back Biden-era regulations intended to accelerate electric vehicle adoption, as reported by CNBC Business (https://www.cnbc.com/2026/09/26/trump-fuel-economy-cafe-standards.html).

Under the standards set by former President Joe Biden, automakers were required to increase the fuel efficiency of passenger cars and light trucks to roughly 50 miles per gallon by 2031. The Corporate Average Fuel Economy (CAFE) program, established in 1975, has historically been updated on a recurring basis to raise fleet efficiency benchmarks.

The full technical specifications of the revised rules have not yet been publicly released. However, Transportation Secretary Sean Duffy previously indicated that the new standards would be sharply lower than the Biden administration's targets.

Trump framed the revision as a cost-saving measure for consumers and manufacturers in a post on Truth Social. 'These new Standards will take the waste out of building cars in America. That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car — Far better than the Environmental Monsters that we were building heretofore,' Trump wrote, adding that companies including General Motors, Ford, and Stellantis had reached out expressing plans to build in the U.S.

The move fulfills a core campaign pledge to rescind policies that incentivized EV production. Lower efficiency requirements allow automakers to produce more profitable pickup trucks and sport-utility vehicles despite their lower gas mileage, though some manufacturers, including General Motors, have maintained they will continue producing electric models.