Trump administration rolls back fuel-economy standards, lowering projected MPG

The U.S. government announced a rollback of the federal fuel-economy standards that were adopted under the previous administration. The new rule sets a 2031 fleet-wide average fuel-efficiency target of 34.9 miles per gallon, compared with the earlier projection of more than 50 mpg.

Transportation Secretary Pete Duffy said the change will let automakers produce the types of vehicles that consumers want rather than meeting mandates from Washington. The administration estimates the revision will lower the technology cost of a new vehicle by about $1,300, with major manufacturers such as General Motors projected to save roughly $20 billion through 2031.

"It will allow automakers to make vehicles American people want to buy, not what Washington is forcing them to build," Duffy said.

Industry analysts note that the savings are not guaranteed to be passed on to buyers, and that the lower efficiency could raise lifetime fuel expenses by an estimated $1,600 per vehicle. The administration also acknowledges that gasoline consumption could rise by up to 5 percent through 2050, adding an estimated 120 billion gallons of fuel use and $300-$400 billion in additional costs for drivers.

Environmental groups have warned that the reduced standards may lead to higher emissions and slower adoption of electric vehicles. California remains the only state with authority to enforce stricter fuel-efficiency rules, though Congress is considering legislation that could limit that authority.

Experts say the impact on consumers will be gradual, as vehicle redesign cycles span three to five years. Potential outcomes include modest price reductions for new cars, but also a market shift away from electric and highly efficient models if buyers prioritize lower upfront costs over long-term fuel savings.