Why is Trump administration looking to implement new lower fuel economy standards in US?

New lower vehicle fuel economy standards have been finalized by the Trump administration on Monday to make it easier for automakers to sell gas-powered vehicles. The move will also reverse a push by the Biden administration to force automakers to build more fuel-efficient vehicles.

Why is Trump administration looking to implement new lower fuel economy standards in US?

The cost of new vehicles will come down due to the new standards but the fuel consumption and carbon dioxide emissions will rise for decades, as per the department's own ​estimates. The gasoline consumption will spike by 4.6% through 2050 in the US due to the new fuel economy standards, claims transportation department. Higher fuel prices have already been troubling drivers in the US since the start of the US-Israeli war with Iran.

In total, the technology costs of the automakers will decline by $60.6 billion through 2031, or about $1,289 per vehicle due to the lower vehicle fuel economy rules, estimates Trump administration. General Motors costs will drop by $20.4 billion through 2031, the department added.

New lower vehicle fuel economy standards

According to the transportation department, it was finalizing a fleetwide average of 34.9 miles per gallon (14.7 km per liter) by 2031. Under ​former President Joe Biden administration, the average was set at 50.4 miles per gallon (21.4 km per liter).

The Biden administration had set rules to make automakers build ​more electric vehicles to meet rising fuel-efficiency standards in 2024. The then president had hiked required fuel efficiency for cars by ​8% annually for 2024 and 2025, 10% for 2026 and 2% annually from 2027 to 2031.

Who supports Trump move?

The government "made the right call to better align fuel economy standards with the law and current market conditions," said the Alliance for Automotive Innovation. AAI is a trade group, which represents General Motors, Toyota, Volkswagen, Hyundai, Ford and other major automakers. AAI added that the Biden administration rules "effectively required a switchover to electric vehicles that was out of step with market realities and customer demand."

Who will fight against new fuel economy standards?

An environmental group, Sierra Club, said it will fight against President Donald Trump administration's new lower fuel economy standards. "Americans need relief from high costs, but instead Trump is giving automakers a free pass on pollution and handing families the bill — at the pump and with their health," Sierra Club said.