'Biden's burdensome rules...': Trump rolls back fuel efficiency standards to keep car prices low for Americans
The move resets the Corporate Average Fuel Economy (CAFE) standards to levels that are more achievable with conventional gasoline and diesel vehicles.
- Dec 4, 2025,
- Updated Dec 4, 2025 8:31 AM IST
In a major policy shift, President Donald Trump announced the rollback of fuel efficiency standards set by the Biden administration, aiming to reduce the financial burden on American consumers and auto manufacturers. The move, unveiled on December 3, resets the Corporate Average Fuel Economy (CAFE) standards to levels that are more achievable with conventional gasoline and diesel vehicles.
The new measures, which affect vehicles manufactured from 2022 to 2031, are expected to save Americans an estimated $109 billion over the next five years. This move, part of Trump’s broader effort to ease costs for American families, will also help the auto industry, which has faced increasing regulatory pressure under the Biden administration’s stricter standards.
Trump calls Biden’s CAFE standards “burdensome” and “expensive”
During an event at the White House, Trump described the Biden administration's fuel efficiency regulations as “burdensome” and “expensive”, arguing that the policies would have driven up the cost of new vehicles by $1,000. According to the White House, Biden's standards had aimed for a fleetwide average of 49 miles per gallon by 2026, which the Trump administration argued would have pushed American consumers toward electric vehicles (EVs) they did not want and significantly raised the cost of conventional cars.
Trump stated, “Joe Biden's fuel efficiency regulations would have raised the cost of a new vehicle by $1,000.” This, he added, would have forced a widespread shift to EVs at a time when many American consumers were not asking for it. In contrast, the Trump administration’s new policy will make it easier for automakers to continue producing gasoline-powered vehicles, while giving them more flexibility to meet fuel economy requirements.
A blow to EV mandates
Trump’s rollback directly targets the electric vehicle mandates that many critics argue were too ambitious for the current market. The new rules, which will apply to passenger cars and light trucks from 2022 to 2031, are expected to ease restrictions and bring the standards in line with what is currently feasible for U.S. automakers.
Trump has repeatedly taken steps to reduce the incentives for EV production, including rescinding EV tax credits and blocking California's plan to ban the sale of new gasoline-powered vehicles by 2035.
The White House official explained that the previous standards were “impossible to meet with available technologies for gas cars” and would have ultimately driven up the cost of new vehicles for consumers. With the rollback, automakers can now focus on more practical solutions without being pressured into producing electric cars at a loss.
In a major policy shift, President Donald Trump announced the rollback of fuel efficiency standards set by the Biden administration, aiming to reduce the financial burden on American consumers and auto manufacturers. The move, unveiled on December 3, resets the Corporate Average Fuel Economy (CAFE) standards to levels that are more achievable with conventional gasoline and diesel vehicles.
The new measures, which affect vehicles manufactured from 2022 to 2031, are expected to save Americans an estimated $109 billion over the next five years. This move, part of Trump’s broader effort to ease costs for American families, will also help the auto industry, which has faced increasing regulatory pressure under the Biden administration’s stricter standards.
Trump calls Biden’s CAFE standards “burdensome” and “expensive”
During an event at the White House, Trump described the Biden administration's fuel efficiency regulations as “burdensome” and “expensive”, arguing that the policies would have driven up the cost of new vehicles by $1,000. According to the White House, Biden's standards had aimed for a fleetwide average of 49 miles per gallon by 2026, which the Trump administration argued would have pushed American consumers toward electric vehicles (EVs) they did not want and significantly raised the cost of conventional cars.
Trump stated, “Joe Biden's fuel efficiency regulations would have raised the cost of a new vehicle by $1,000.” This, he added, would have forced a widespread shift to EVs at a time when many American consumers were not asking for it. In contrast, the Trump administration’s new policy will make it easier for automakers to continue producing gasoline-powered vehicles, while giving them more flexibility to meet fuel economy requirements.
A blow to EV mandates
Trump’s rollback directly targets the electric vehicle mandates that many critics argue were too ambitious for the current market. The new rules, which will apply to passenger cars and light trucks from 2022 to 2031, are expected to ease restrictions and bring the standards in line with what is currently feasible for U.S. automakers.
Trump has repeatedly taken steps to reduce the incentives for EV production, including rescinding EV tax credits and blocking California's plan to ban the sale of new gasoline-powered vehicles by 2035.
The White House official explained that the previous standards were “impossible to meet with available technologies for gas cars” and would have ultimately driven up the cost of new vehicles for consumers. With the rollback, automakers can now focus on more practical solutions without being pressured into producing electric cars at a loss.