President Trump approves new fuel economy standards in the US — CNBC

US President Donald Trump said he had approved new vehicle fuel economy standards that reverse the stricter rules of his predecessor Joe Biden’s administration. As CNBC reports, the final parameters of the new requirements have not yet been publicly disclosed.

Replacing the Biden-era rules

Corporate Average Fuel Economy, or CAFE, standards have been in effect in the United States since 1975 and are periodically revised. Under the Biden administration’s rules, automakers were required to raise the fuel efficiency of passenger cars and light trucks to about 50 miles per gallon by 2031.

These requirements were intended to promote greater vehicle efficiency, as well as broader production and sales of electric vehicles and hybrid models in the United States. The regulatory change also fulfills Trump’s campaign promise to repeal policies that encouraged or incentivized the production and sale of electric vehicles.

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Lower requirements for automakers

US Transportation Secretary Sean Duffy previously said that the new standards would be substantially lower than the requirements of the Biden period. Trump himself presented the decision as beneficial for automakers and car buyers, claiming it would help lower prices for new vehicles.

Weaker fuel economy standards give manufacturers more opportunities to produce pickup trucks and SUVs, which are more profitable than smaller cars but have worse fuel consumption figures. According to CNBC, this also makes electric vehicles less attractive to manufacturers, although individual companies, including General Motors, have said they will continue producing them.