US President Donald Trump said on Saturday that he had approved new fuel economy standards that would roll back Biden-era requirements and what he described as an electric vehicle mandate, while claiming the changes would reduce car prices and support US auto manufacturing.
In a post on Truth Social, Trump argued that previous fuel economy rules had increased costs for automakers and consumers while encouraging manufacturers to shift towards electric vehicles.
“That means LOWER PRICES, saving families thousands on a new, beautiful, and safe car,” Trump wrote.
Trump did not provide details of the new standards, and the administration had not immediately released a final rule accompanying his announcement.
Transportation Secretary Sean Duffy said on X that “a major victory for America’s auto workers is COMING MONDAY”, without specifying whether he was referring to the fuel economy standards announced by Trump.
Administration Proposes Lower Fuel Economy Requirements
The Trump administration had signalled in August that it was preparing to significantly reduce future fuel economy requirements for automakers.
A National Highway Traffic Safety Administration proposal from December projected an average fleetwide fuel economy of about 34.5 miles per gallon by 2031, compared with roughly 50.4 mpg under Biden-era standards.
It remained unclear whether the standards Trump referred to on Saturday were the same as that proposal or included additional changes.
The Biden-era rules were designed to reduce fuel consumption and greenhouse gas emissions while encouraging automakers to produce more fuel-efficient vehicles and EVs. However, the rules did not require consumers to buy electric vehicles, despite Trump’s repeated description of them as an EV mandate.
Potential Impact On Vehicle Costs
Supporters of the proposed rollback have argued that lower fuel economy requirements could reduce compliance costs for automakers and lower the upfront price of new vehicles.
NHTSA estimated that its earlier proposal could reduce the average upfront cost of a new vehicle by about $930.
However, the agency also projected that the proposal could increase fuel consumption by about 100 billion gallons through 2050, add approximately $185 billion in fuel costs and raise carbon dioxide emissions by around 5 per cent.
Trump said the policy would also encourage manufacturing investment and jobs in states including Michigan, Ohio, Indiana and South Carolina.
The announcement comes as the administration continues to reverse policies aimed at accelerating electric vehicle adoption. Congress previously ended federal tax credits for new, used and commercial EVs acquired after September 30, 2025.
Trump’s post did not specify when the new fuel economy standards would take effect. Further details were expected as the administration prepares for a broader announcement.