(NewsNation) — The Trump administration on Wednesday is expected to propose a rollback of fuel efficiency standards that could reshape the auto industry.
The plan, if finalized next year, would significantly reduce fuel economy requirements, which set rules on how far new vehicles need to travel on a gallon of gasoline, through the 2031 model year. The rules will increase Americans’ access to the full range of gasoline vehicles they need and can afford, officials said. The administration projects that the new standards would set the industry fleetwide average for light-duty vehicles at roughly 34.5 miles per gallon in the 2031 model year.
The move is the latest action by the Trump administration to reverse Biden-era policies that encouraged cleaner-running cars and trucks, including electric vehicles. Burning gasoline for vehicles is a major contributor to planet-warming greenhouse gas emissions.
“From day one I’ve been taking action to make buying a car more affordable.” Trump said at a White House event that included top executives from the three largest U.S. automakers.
The rule reverses a Biden-era policy that “forced automakers to build cars using expensive technologies that drove up costs, drove up prices and made the car much worse,” Trump said.
The action is expected to save consumers about $1,000 off the price of a new car, Trump said. New cars sold for an average of $49,766 on average in October. according to Kelley Blue Book.
Trump’s comments were met with praise from automakers Ford Motor Company, General Motors and Stellantis.
“As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities,” Jim Farley, CEO of Ford Motor Company told NewsNation. “We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability. This is a win for customers and common sense.”
The White House is expected to argue its change will cut the average of of a new car by about $1,000 and $109 billion in total. This effort comes as the White House emphasizes affordability issues amid Democratic wins in last month’s elections and poll numbers showing a majority of Americans disapproving of the president’s economic policies.
The Biden administration raised efficiency requirements by 8% for 2024/2025 models and 10% for 2026 ones. The increased standards were touted when they were announced in 2024 as key to reducing pollution.
The standards “will save people hundreds of dollars of hard-earned money at the gas pump and will help make our nation less reliant on foreign oil, all while reducing air pollution and helping us address the climate crisis,” Alice Henderson, the Director of Transportation and Clean Air Policy for the Environmental Defense Fund, said at the time.
The Biden administration estimated its fuel efficiency rules would lower fuel costs by $23 billion, saving Americans money. But overall, regulations have proved costly for automakers. Stellantis, a multinational automotive company that owns brands such as Jeep, Dodge and Ram, recently paid close to $200 million in fuel requirement penalties, according to Reuters.
Relaxed standards could save those manufacturers money. The Trump administration appears to be hoping to pass those savings on to consumers, with the proposed rollback also reportedly aimed at bringing down the cost of cars.
Americans are now paying more than ever for their vehicles. The Kelley Blue Book reported in October that the average buyer is spending around $50,000 on a new car. During this time of year, business usually booms at car dealerships, but the book reports sales are down nearly 8% this year, with tariffs, the economy and EV credits playing a significant role.