Trump's fuel economy rule reversal: key impacts

The U.S. Secretary of Transportation has ordered the repeal of the miles-per-gallon regulations for cars and light trucks.

One of the first mandates established by the new U.S. Secretary of Transportation, Sean Duffy, is related to the main way the federal government currently regulates miles per gallon for cars and trucks, as well as air pollution and climate change. These regulations have been in effect in the U.S. since the 1970s, aimed at saving fuel and money for consumers. However, Duffy has ordered the federal agency responsible for fuel economy standards to reverse these regulations as soon as possible.

Duffy’s plan is not yet fully clear, so it is necessary to understand the advantages and disadvantages of this decision. According to an article published by The Associated Press, there are some key factors to understand about this action.

General plan of the trump administration

The order to rescind or replace the fuel economy standards, imposed by Duffy on the National Highway Traffic Safety Administration (NHTSA), is designed to align with Trump’s energy policy, which promotes oil and biofuels. This is because the current standards are considered contrary to the administration’s policy, as indicated by the Secretary of Transportation. However, this regulatory change process could take several years. Duffy, who has publicly expressed doubts about climate change, has stated his commitment to reducing regulations from his new position, starting with this decision.

Duffy’s action supports Trump’s promises in response to Biden’s goal of having 50% of new cars be electric by 2030. Duffy believes the fuel economy standards are so aggressive that they make it difficult for manufacturers to comply without rapidly shifting to electric vehicles, which, according to him, increases costs and reduces consumer choice.

The Secretary argues that the new standards should be more realistic and aligned with the U.S. reserves of oil and biofuels. The revision of the standards aims to make it easier for manufacturers to comply, avoiding penalties, and encouraging the use of liquid fuels like gasoline and diesel.

Impact on consumers and the environment

Duffy’s vision promises to eliminate the fuel economy standards, allowing Americans to access more gasoline-powered vehicles at affordable prices. However, The Associated Press reports that critics like Dan Becker argue this will increase consumer costs, boost pollution, and damage the U.S. automotive industry, benefiting mainly oil executives and the Chinese automotive industry.

In recent years, car manufacturers have improved the mileage of gasoline vehicles, reducing the cost of driving and affecting oil sales. The Environmental Protection Agency (EPA) highlights that transportation was the leading source of greenhouse gas emissions in 2022, as vehicle carbon emissions contribute to climate change.

Differences between the previous standards and the current proposal

To understand the decision, it’s important to have the full picture. In the 1970s, the CAFE (Corporate Average Fuel Economy) standards were established in response to the oil crises of the decade. These standards aimed to reduce fuel consumption by requiring car manufacturers to meet fuel efficiency goals. Although there were initially no significant advances, in recent decades manufacturers have improved the mileage of internal combustion vehicles, partly due to stricter standards.

Under the Biden administration, the new standards set an average of 38 miles per gallon by 2031, with annual increases of 2% in fuel efficiency between 2027 and 2031 for cars and light trucks. These standards also aligned with the EPA’s emission limits and supported the manufacturing and purchase of electric vehicles. The standards were expected to save nearly 70 billion gallons of gasoline by 2050.

However, the changes proposed by the Trump administration must be coordinated with other federal vehicle emission regulations overseen by various agencies, including the EPA and the Department of Energy. Although the results cannot yet be predicted, a significant change is expected under Duffy’s proposal.