By Shawn Henry 
The Trump administration is preparing to announce revised fuel economy rules this week, signaling a major shift in federal policy as officials argue that current requirements are contributing to rising vehicle prices. According to reports from multiple outlets, senior White House officials and top executives from Detroit’s major automakers are expected to participate in the rollout of the new standards.
While the administration has not released the final details, the updated rules are expected to be less demanding than those enacted during the Biden administration. Those earlier fuel economy requirements called for steady increases in efficiency through the next decade, with the National Highway Traffic Safety Administration targeting an average of 50.4 miles per gallon for passenger cars by the 2031 model year. The Trump administration has long argued that such benchmarks are unrealistic and place excessive strain on automakers and consumers.
Regulatory rollback in the auto sector has been a central theme since Trump took office for his second term. Within days of his inauguration, Transportation Secretary Sean Duffy ordered a full review of Biden-era rules, asserting that the existing fuel standards could push consumers away from affordable vehicles and limit the availability of traditional gasoline-powered models. The administration has also warned that requirements tied to the Corporate Average Fuel Economy system could threaten manufacturing jobs and lead to penalties that ultimately increase costs for buyers.
Congressional Republicans have already taken steps to ease those pressures. A provision eliminating fines for failing to meet CAFE targets was included in a broad tax and spending package earlier this year, offering relief particularly to Detroit-based manufacturers. Stellantis and General Motors have paid hundreds of millions of dollars in penalties in recent years for missing federal benchmarks.
The push to soften regulations comes at a time when new car prices remain historically high. Industry data shows the average transaction price hovering just under $50,000, a figure influenced in part by strong demand for high-priced trucks and SUVs. Analysts note that even as some automakers increase investment in gas-powered production, the market continues to reflect shifting consumer preferences and rising costs.
The administration is expected to outline its revised standards as part of its broader argument that easing regulatory burdens will help stabilize prices and expand consumer choice in a rapidly changing automotive landscape.
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