The U.S. Department of Transportation, led by President Donald Trump, is advancing efforts to undo several environmental initiatives established during President Joe Biden's tenure. A new proposal from the National Highway Traffic Safety Administration sets fuel economy requirements for 2031 model-year passenger vehicles and light trucks at 34.5 miles per gallon on average, a significant drop from the 50.4 miles-per-gallon target designed to promote greater use of electric vehicles by American consumers.
This development aligns with expectations following Trump's return to the presidency. Transportation Secretary Sean Duffy directed the NHTSA to reassess the fuel economy regulations just one day into his role this January. The administration also eliminated a federal incentive for electric vehicle purchases during the summer months. Meanwhile, global automakers are accelerating development of superior electric models for overseas buyers, with U.S. access limited by import duties.
In today's statement, the Trump team asserted that the adjustment would lower the typical price of a new vehicle by $1,000 and deliver $109 billion in total savings across five years. However, fuel costs could rise if the Environmental Protection Agency manages to overturn its determination that human activities contribute to climate change. Additionally, experts foresee escalating economic and societal impacts from intensified extreme weather incidents amid ongoing global temperature rises.