The Trump administration has finalized sharply lower vehicle fuel economy standards through 2031, reversing the Biden-era push for more electric vehicles. The new rules set a fleetwide average of 34.5 mpg by 2031, down from 50.4 mpg under the previous target. Officials say this will cut average new vehicle costs by $930, but the Department of Transportation estimates it will increase fuel consumption by 100 billion gallons and CO2 emissions by about 5% through 2050. This policy shift comes as U.S. drivers face higher fuel prices following the conflict with Iran. Automakers will find it easier to sell less efficient vehicles, which could slow the transition to cleaner transportation. The standards are part of a broader rollback of climate regulations, raising questions about the long-term impact on emissions and the competitiveness of U.S. clean tech manufacturing.
