By Shawn Henry 
The Trump administration has begun the formal process of rolling back federal fuel economy standards, marking a significant shift in U.S. transportation and environmental policy and reversing rules put in place under the Biden administration.
The changes target the Corporate Average Fuel Economy standards, which require automakers to steadily improve the average fuel efficiency of the vehicles they sell each year. Under the Biden-era framework, automakers were required to increase fleet-wide efficiency by about 2% annually. The Trump administration now proposes returning to a 2022 baseline and limiting annual increases to 0.5%.
Administration officials say the revised standards will make new vehicles more affordable by easing regulatory pressure on automakers. The move follows earlier actions that removed financial penalties for automakers that fail to meet fuel economy targets, effectively weakening enforcement of the existing rules.
Fuel economy standards have long been designed to reduce fuel consumption and emissions by encouraging more efficient vehicles. Automakers that fell short of targets were previously required to pay fines or purchase efficiency credits from companies that exceeded requirements, including electric-only manufacturers.
The proposed rollback now enters a public comment period, during which the Department of Transportation will gather feedback from automakers, industry groups, and the public before finalizing the rule.
The fuel economy changes come amid a broader effort by the administration to undo policies aimed at accelerating the transition to electric vehicles. Congress has eliminated federal tax credits for electric vehicle purchases, moved to end incentives for home EV charger installation earlier than planned, and revoked federal waivers that allowed California and other states to mandate zero-emission vehicle sales. The administration has also delayed a federally funded program to expand high-speed EV charging infrastructure.
Automakers have welcomed the regulatory shift, particularly as consumer demand continues to favor trucks and SUVs, which are less fuel-efficient but generate higher profits. Industry leaders have indicated the rollback could help offset other financial pressures, including tariffs.
At the same time, automakers face uncertainty in global markets where emissions regulations remain strict and competition from lower-cost electric vehicles continues to grow. The repeated changes in U.S. policy across administrations have complicated long-term planning for vehicle development.
While the administration frames the rollback as relief for consumers and manufacturers, the policy underscores ongoing debate over affordability, emissions, and the pace of electric vehicle adoption in the United States.
Source
Eve