The Trump administration finalized new fuel efficiency standards requiring automakers to achieve an average of 34.9 miles per gallon by 2031, a significant reduction from the Biden-era target of 50.4 miles per gallon. President Trump framed the change as a win for affordability, calling it a “BIG DAY FOR AMERICAN AUTO WORKERS AND CAR BUYERS.” Critics warn that lower efficiency could raise long-term fuel costs, especially with gas prices near $4.50 per gallon. The rules are seen as largely toothless after Congress eliminated fines for non-compliance and repealed $7,500 electric vehicle tax credits.

Transportation Secretary Sean Duffy called the move a rejection of an “illegal mandate,” while Gina McCarthy, former climate adviser under Joseph R. Biden Jr., criticized the rollback as shortsighted. Industry group Alliance for Automotive Innovation, led by John Bozzella, praised the rule as a “course correction,” though analysts warn it may slow EV innovation and hurt U.S. competitiveness globally.