Trump’s Fuel-Economy Rollback Will Raise Drivers’ Costs

Introduction

The administration has introduced a major shift in U.S. vehicle efficiency policy, arguing that looser fuel-economy rules will make new cars more affordable. Yet the proposal also ensures that American drivers will spend more on gasoline over the life of their vehicles. The policy represents a decisive break from the previous government’s push toward cleaner technology and competitive electric-vehicle development.

What the New Fuel-Efficiency Proposal Does

The National Highway Traffic Safety Administration (NHTSA) has put forward a plan to reduce future fleetwide fuel-economy targets. Instead of aiming for an average of 50.4 miles per gallon, the new goal would fall to 34.5 mpg.
The administration argues that this rollback will cut manufacturing costs and ease sticker prices for shoppers. NHTSA estimates the average new vehicle could be about $900 cheaper under the lower requirements.

But that figure must be weighed against another consequence: nationwide fuel use would increase, requiring drivers to spend more at the pump for years to come.

A Major Reversal from Prior Clean-Transport Strategy

The Biden-era Corporate Average Fuel Economy (CAFE) standards were designed to push automakers toward higher efficiency and greater adoption of electrified powertrains. Those rules were also intended to strengthen the U.S. position against rapid EV development in China.

In the first year of the new administration, much of that framework has been dismantled. Congress’s sweeping One Big Beautiful Bill Act removed most penalties for failing to meet CAFE requirements, severely weakening the program. Simultaneously, officials are working to roll back Environmental Protection Agency emissions limits that were set to help accelerate electrification.

The Impact on State-Level Clean Vehicle Rules

The administration is also seeking to cancel California’s authority to set stricter EV requirements—a long-standing right under the Clean Air Act and a model now adopted by more than a dozen states. If revoked, this move would significantly shrink the regulatory pressure encouraging manufacturers to build more efficient models.

Why Automakers and Dealers Support the Rollback

Industry groups have applauded the shift. The National Auto Dealers Association, for example, praised the new direction as a win for “consumer choice” and affordability.
However, dealers also profit more from gasoline vehicles, both in sales margins and long-term service revenue. Automakers, too, tend to earn higher returns on established gas platforms than on newly developed EVs.

The rollback creates fewer incentives for companies to invest in advanced efficiency technologies and more support for continuing to sell familiar, profitable combustion models.

Will Cars Actually Become Cheaper?

While the policy promises lower upfront prices, independent analyses raise doubts. Consumer Reports has long documented how fuel-economy gains deliver substantial lifetime savings—over $9,000 per vehicle since 2001, according to its research.

Experts remain skeptical that automakers will pass on meaningful savings when equipment requirements are relaxed. Chris Harto, a senior policy analyst at Consumer Reports, has stated that eliminating CAFE rules has “almost a 0% chance” of creating true price reductions for buyers. Instead, the primary effect will be higher fuel costs.

Long-Term Risks for U.S. Competitiveness

Even with weaker standards, automakers will still need to comply with baseline fuel-economy requirements. Yet the revised numbers are now far behind global targets, especially in Europe and parts of Asia.
This gap could leave American manufacturers less prepared for an international market that increasingly favors efficient and electric technologies.

For consumers, this means higher gasoline spending and fewer choices in advanced vehicles. For the country as a whole, it risks ceding leadership in the future of transportation.

Conclusion

Rolling back efficiency standards may produce a modest drop in initial vehicle prices, but the broader effect is clear: drivers will pay more to keep their cars fueled, and U.S. automakers may fall further behind global innovation. The policy prioritizes short-term gains for legacy industries at the expense of long-term savings, environmental health, and national competitiveness.

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