Trump administration rolls back fuel economy standards, again

The Trump administration announced a rollback of fuel economy standards for cars and light trucks in the U.S., lowering the target to 34.5 miles per gallon (mpg) for 2031 model-year vehicles, down from the previous standard of 50.4 mpg. This regulatory change also reclassifies crossovers as cars rather than light trucks and permits the production of smaller vehicles similar to those popular in Japan and South Korea. The administration argues that the previous standards would have increased vehicle prices by about $1,000 each. However, since the last rollback in 2020, average new vehicle prices have surpassed $50,000, driven by consumer preference for larger, less fuel-efficient SUVs, challenging the administration’s claim that lower fuel economy aligns with buyer interests. Critics, including former EPA administrator Gina McCarthy, contend that this rollback undermines U.S. leadership in clean vehicle innovation and cedes the global market to countries like China. The recent One Big Beautiful Bill Act further weakened