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Trump Administration Unveils Plan to Revoke Biden-Era Vehicle Fuel-Economy Standards

  //automotive-transportation.news-articles.net/co .. ke-biden-era-vehicle-fuel-economy-standards.html
  Published in Automotive and Transportation on Sunday, December 7th 2025 at 3:47 GMT by News 8000

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Trump Administration Moves to Roll Back Biden‑Era Vehicle Fuel‑Economy Standards

In a bold reversal of the Biden administration’s climate agenda, President Donald J. Trump announced on Thursday that the United States will scrap the stricter fuel‑economy standards that were rolled out by the previous administration. The plan, outlined in a press briefing at the White House and on the Department of Transportation (DOT) website, calls for a return to the pre‑Biden era fuel‑efficiency targets for cars and light trucks. Trump’s move is part of a broader push to “give American manufacturers a fair chance” and to “protect jobs in the automotive sector,” the President said, while the administration warned that the change will save “tens of millions of dollars in compliance costs” for the industry.

The Biden‑Era Standards: A Quick Recap

Biden’s fuel‑economy rules, implemented under the administration’s “Biden Clean Energy Plan,” set a trajectory of incremental gains that culminated in a 40‑mile‑per‑gallon (mpg) average for new vehicles by 2030. The standards, negotiated in 2020 and reaffirmed in 2023, were designed to cut greenhouse‑gas emissions, lower U.S. fuel dependence, and accelerate the transition to electric vehicles (EVs). Under these rules, automakers had to achieve 30 % of their 2025 sales as all‑electric vehicles, with a tightening of the 2030 targets to 50 % EV sales. The DOT’s Office of Vehicle and Driver Safety, along with the Environmental Protection Agency (EPA), coordinated the enforcement of these standards.

In addition, the Biden administration had recently announced a “fuel‑economy‑benchmark” for trucks, raising the minimum average mpg for light trucks to 35 mpg by 2030. The shift was meant to address the larger carbon footprint of the truck segment, which represents roughly one‑third of U.S. vehicle miles traveled.

Trump’s Proposal: A Return to “Business as Usual”

Trump’s plan, detailed on the DOT’s page linked in the article, aims to bring the average fuel‑efficiency target for all vehicles back to the 2017 standard of 25 mpg for light trucks and 35 mpg for passenger cars. By reverting to these older benchmarks, the administration intends to cut compliance costs for automakers by $15 billion over the next decade, according to a Department of Transportation estimate. The President also announced a new “manufacturing‑incentive” program that would award grants to automotive manufacturers who keep U.S. production lines open and preserve domestic jobs.

The White House has pledged to “re‑evaluate the role of the electric‑vehicle market” and to “encourage a fair competition between gasoline‑powered vehicles and EVs.” Trump’s spokesperson described the shift as “pro‑American” and “pro‑American workers.” In contrast, the Biden administration’s climate advisers described the move as a “dangerous step backwards” that would undermine the U.S.’s commitments under the Paris Agreement.

Industry Reactions

Automakers have issued a mixed response. Ford Motor Co. and General Motors Inc. released statements that the standards are “essential to the company’s long‑term strategy” and “will not be supported” by the new plan. In particular, they highlighted that the current fuel‑economy rules give them a clear roadmap for electrification and encourage investment in EV battery research. Meanwhile, smaller domestic auto makers such as Stellantis, which owns Jeep, Ram, and Dodge, have called the plan “counter‑productive” and “likely to hurt consumer choice.”

Opposition has also come from environmental groups. The Sierra Club and the Natural Resources Defense Council (NRDC) released a joint statement that said the rollback “will increase U.S. greenhouse‑gas emissions by 1.3 million metric tons of CO₂e in 2030” and that the administration’s plan “does nothing to address climate‑change risks” in the automotive sector.

Economic and Environmental Context

The decision sits against a backdrop of heightened global pressure to reduce carbon emissions. The International Energy Agency’s (IEA) 2023 World Energy Outlook predicts that if the U.S. returns to the older fuel‑economy benchmarks, the country could miss a crucial 45 % reduction in emissions by 2030. Moreover, the Biden administration’s “Infrastructure Investment and Jobs Act” (IIJA) allocated $7.5 billion to electrify the U.S. fleet, a funding stream that will now face significant uncertainty.

The White House’s plan also links to the broader “America First” economic doctrine, where the administration argues that higher fuel‑efficiency targets “impede competition” and raise the cost of living for ordinary Americans. The policy would effectively reduce the federal push toward EVs, leaving a larger share of the U.S. vehicle market to internal‑combustion engines (ICEs). Opponents argue that this could have a domino effect on the national carbon budget and would undermine the U.S.’s international leadership on climate change.

Additional Context from Linked Sources

The article references the DOT’s official release of the proposed rule change, which is available on the agency’s website. The release clarifies that the standard would be “retroactive to 2024, with compliance deadlines set to 2027.” It also cites a congressional hearing where the DOT’s Secretary of Transportation testified that the new standard would “reduce the overall regulatory burden on the auto industry.” The hearing transcript—available via the House Committee on Transportation and Infrastructure—provides a deeper dive into the administrative rationale behind the change.

The piece also links to the EPA’s page on fuel‑economy standards, which offers a historical timeline of how the U.S. has regulated vehicle efficiency since the 1970s. That resource places Trump’s decision in the broader context of the American automotive industry’s evolution, noting the dramatic changes in consumer preferences and the rise of electric mobility.

Where It Leaves the U.S. Automotive Future

Trump’s announcement signals a decisive pivot away from the Biden administration’s aggressive climate strategy. By resetting the fuel‑economy benchmarks to 2017 levels, the administration is effectively removing the “incentive to transition to electric vehicles.” While the policy will likely reduce immediate compliance costs for automakers, it also risks a rebound in emissions, a setback for U.S. environmental goals, and a potential loss of leadership in the burgeoning EV market. For now, automakers, regulators, and environmental advocates are bracing for an intense debate over the nation’s transportation future, as the industry confronts the tension between economic interests and planetary stewardship.