World Economy

Trump Administration Relaxes Fuel Economy Rules, Targets Lower Vehicle Prices

The Trump administration finalized new Corporate Average Fuel Economy standards today, reducing annual fuel efficiency requirements for automakers from 2% to 1%. The revised rules set a fleet average target of 34 miles per gallon, down from the previous goal of 50 mpg. Transportation Secretary Sean Duffy said the rollback will reduce vehicle costs by approximately $1,300 per car. Administration officials contend that stricter efficiency technology requirements have inflated new vehicle prices and burdened manufacturers. The move represents the latest in a series of policy reversals targeting Biden-era environmental regulations, including cuts to electric vehicle purchase incentives and delays to federal EV charging infrastructure funding. Climate advocates argue the decision undermines emissions reduction efforts.