Earlier this month, US President Donald Trump unveiled plans to lower fuel efficiency standards for cars and trucks, claiming the move would make vehicles more affordable and give consumers greater freedom of choice. However, experts warn that the changes are “highly speculative” in terms of consumer savings and could undermine years of investment in electric vehicles (EVs) and cleaner car technologies.
Proposed Fuel Efficiency Changes
The new standards would reduce fuel efficiency requirements to 34.5 miles per gallon (14.7 km per litre), compared with 50.4 miles per gallon (19 km per litre) under the previous Biden administration rules. Trump has branded the policy the “Freedom Means Affordable Cars” initiative, suggesting that lower standards could make new vehicles up to $1,000 cheaper and support US manufacturing.
However, experts caution that the actual savings for consumers are uncertain, given the massive investments automakers have already made to meet stricter efficiency standards.
Impact on US Automakers and EV Industry
Ford Motors reported a $19.5 billion impact after scaling back EV production, while General Motors disclosed a $1.6 billion effect related to its EV pullback, along with 3,400 layoffs at EV sites. These adjustments reflect a slower transition to electric vehicles in the US, where EVs currently represent less than 10% of the market, far below the 25% global EV sales share.
Industry analysts emphasize that cutting fuel standards and reducing EV incentives could push consumers toward gas-guzzling vehicles, which will ultimately increase fuel costs and hurt household budgets over time.
Public Health and Environmental Concerns
Environmental experts warn that rolling back fuel standards will increase emissions, endangering public health. Transportation is the leading source of air pollution in the US, contributing to respiratory and cardiovascular illnesses.
- William Barrett, Assistant VP at the American Lung Association, highlighted risks for children:
“Children are more vulnerable because their lungs are still developing. Increased pollution could have immediate and lasting effects.”
Additionally, the EPA’s rollback of the Endangerment Finding could weaken regulations limiting greenhouse gas emissions from vehicles, potentially reversing decades of climate and health protections.
Consumer and Market Implications
Automotive analyst Karl Brauer argues that while the rollback may provide short-term benefits like lower vehicle prices and higher profit margins for automakers, it could make US carmakers less competitive globally, especially as countries like China push forward with EV adoption.
Mathew Tarduno, Assistant Professor at the University of Illinois at Chicago, notes:
“If these rules hold, they will significantly impact fuel consumption in the 2030s and may put US automakers at odds with global efficiency standards.”
Tesla, the largest EV manufacturer in the US, is expected to be hit hardest, with recent sales already down 23% after the $7,500 federal tax credit expired.
Regulatory and Legal Challenges
Environmental groups and consumer advocates plan to challenge the proposed rules. Public hearings will be held until the end of next month, allowing stakeholders to submit comments and prepare legal action if the fuel standard rollback proceeds.
- Dan Becker, Director of the Safe Transport Campaign at the Center for Biological Diversity:
“Buying gas-guzzling cars will cost consumers more money. The government cannot ignore cleaner, more efficient technologies.”
- Nikki Reisch, Director at the Center for International Environmental Law:
“Gas-powered cars can’t compete with EVs and hybrids in fuel efficiency. These technologies exist and must not be ignored.”
Balancing Consumer Choice and Climate Goals
The Trump administration argues that rolling back standards increases freedom of choice, allowing petrol and electric vehicles to compete equally. It estimates automakers could save over $35 billion in technology costs through 2031, potentially lowering vehicle prices.
However, analysts warn that these short-term gains could come at the cost of long-term climate and public health goals, increased fuel consumption, and weaker global competitiveness in the EV market.
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