The Trump administration moved to significantly roll back vehicle fuel efficiency standards, a setback for climate activists that will also likely raise costs for drivers. Low-emission vehicles have been a target of the administration and Congressional Republicans for months, including through the unwinding of tailpipe emissions regulations and the elimination of tax credits for electric vehicles.
Now, the Transportation Department plans to slash rules adopted by the Biden administration that required automakers to make their cars 2% more fuel efficient every year, which the White House argued “effectively resulted in an EV mandate.” That requirement will now fall to 0.5%. The change will make new cars less expensive, the administration said. But that could be offset by higher fuel costs; a Biden administration study found improved fuel efficiency standards would save most drivers $600 on fuel over the course of a car’s lifetime. Auto executives, who generally supported the latest change, pledged to keep developing EVs anyway — but the lower standards will make it easier to keep selling SUVs and pickups, which have a higher profit margin.