Trump administration cuts fuel-economy targets, prompting industry praise and environmental criticism

On Monday the Trump administration released revised fuel-economy standards that bring the projected 2031 average fuel efficiency for new cars and light trucks down to roughly 34.9 miles per gallon, far below the 50.4 mpg target set by the previous administration. The announcement followed President Trump's rejection of an Iranian proposal to reopen the Strait of Hormuz, which had spurred a jump in oil prices. Secretary of Transportation Sean Duffy said the rule ends an "illegal mandate" and will make vehicles more affordable and safe, while the National Highway Traffic Safety Administration had earlier estimated a similar figure of about 34.5 mpg.

Industry representatives, including John Bozzella of the Alliance for Automotive Innovation and a Ford spokesperson, welcomed the shift as better aligned with consumer demand and U.S. auto-industry competitiveness. At the same time, environmental groups such as the Center for Biological Diversity and the Sierra Club warned the rollback will raise gasoline use, increase carbon dioxide, soot and smog emissions, and raise costs for drivers amid already high fuel prices. The administration has also rescinded EV consumer credits and fines for non-compliance, further signaling a move away from electric-vehicle incentives.