Trump Sharply Scales Back Fuel Economy Rules for New Cars

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Published: 2026-09-28T16:32:12.644Z • Permanent link

Donald Trump's administration has issued a final rule that will sharply scale back fuel economy standards for new cars, marking the culmination of a long-standing effort to dismantle policies aimed at accelerating the shift to electric vehicles. The move is a significant victory for the automotive industry, which had long lobbied against the stringent fuel economy regulations imposed by the Obama-era Clean Power Plan. The new rule, which will be finalized in July 2022, will effectively roll back the fuel economy standards set by the Environmental Protection Agency (EPA) in 2016, which had required automakers to achieve an average fuel economy of 52.5 miles per gallon by 2025.

The rule is expected to have far-reaching implications for the global automotive industry, with many companies having already invested heavily in electric vehicle technology and infrastructure. Tesla, for example, has been a vocal advocate for stricter fuel economy standards, and has argued that the current regulations are necessary to reduce greenhouse gas emissions and mitigate climate change. Other companies, such as Volkswagen and General Motors, have also expressed concerns about the impact of the new rule on their business models and the environment.

The Trump administration's decision to scale back fuel economy standards has been met with widespread criticism from environmental groups and lawmakers, who argue that the move will have devastating consequences for public health and the environment. The American Lung Association has warned that the new rule will lead to increased air pollution and higher rates of respiratory disease, particularly among vulnerable populations such as children and the elderly. Congressional Democrats have also vowed to take action to block the rule, citing concerns about its impact on the environment and public health.

The new rule on fuel economy standards has significant implications for the global automotive industry, with many companies facing significant challenges in adapting to the changes. Research communities and policymakers will need to reassess their expectations around the pace of electric vehicle adoption and the role of fuel economy standards in driving this transition. The National Renewable Energy Laboratory (NREL) has estimated that the current fuel economy standards will save up to 1.8 billion barrels of oil per year by 2030, which could be lost if the new rule is implemented.

The automotive industry will also need to reassess its business models and investment strategies in light of the new rule. Companies such as Tesla, which has invested heavily in electric vehicle technology, will need to reassess their expectations around the pace of adoption and the potential impact on their bottom line. The International Council on Clean Transportation (ICCT) has warned that the new rule could lead to a significant slowdown in electric vehicle adoption, which could have far-reaching consequences for the environment and public health.

The Trump administration's decision to scale back fuel economy standards is part of a larger pattern of efforts to roll back environmental regulations and reduce the role of government in the economy. The administration has also taken steps to dismantle other environmental regulations, including the Clean Power Plan and the Waters of the United States rule. These efforts have been met with widespread criticism from environmental groups and lawmakers, who argue that they will have devastating consequences for public health and the environment.