US President Donald Trump announced on Wednesday that his administration will reverse the fuel-economy standards put in place under Joe Biden. He said this move will bring down the cost of cars and make them more affordable for American families.

Trump made the announcement in the Oval Office. He stood beside executives from Ford and Stellantis, along with a senior official from General Motors. Their presence showed that Detroit’s “Big Three” carmakers support the decision.

“My administration is taking historic action to lower costs for American consumers, protect American auto jobs and make buying a car much more affordable,” the US president said.

Ford CEO Jim Farley also backed the plan. “Today is a victory (for) common sense and affordability,” he said.

Environmental groups raise serious concerns

Environmental organisations reacted quickly and strongly. They warned that weakening the fuel rules could worsen climate change and undo one of the most important efforts to cut oil use and reduce carbon pollution.

“Trump is taking a wrecking ball to the biggest single step any nation has ever taken to combat oil use, global warming pollution, and helping save consumers money at the gas pump,” said Dan Becker of the Center for Biological Diversity.

The rules under debate are called the Corporate Average Fuel Economy, or CAFE, standards. The US first introduced them in 1975 after the Arab oil embargo. Their goal was to reduce dependence on foreign oil. These rules require carmakers to build vehicles that get the “maximum feasible” miles per gallon.

Under Trump’s plan, both past and planned increases in fuel efficiency would be reversed. The new goal would be a fleet-wide average of 34.5 miles per gallon by the 2031 model year. Becker said this target is “no better than what American cars are getting today.” He also noted that CAFE ratings usually look around 25 percent better than real driving conditions.

Government justifies the rollback

Trump’s Department of Transportation defended the decision. It said the Biden administration made a mistake by including electric and hybrid vehicles when setting fuel targets. Officials claimed the standards were too hard to reach for petrol-powered cars and were designed to push the industry towards electric vehicles.

Gina McCarthy, who served under both Biden and Barack Obama, strongly disagreed. She said this policy change will damage the environment and slow the progress of the US auto industry.

“The rest of the world will continue to innovate and create cleaner cars that people want to buy and drive, while we’re forced to sit in our clunkers, paying more for gas, and pumping out more tailpipe emissions,” she warned.

Trump’s ongoing opposition to electric vehicles

Trump has often criticised what he calls an electric vehicle “mandate.” This has put him at odds with Tesla CEO Elon Musk, even though their relationship has shifted over time. Tesla still leads the electric vehicle market in the US.

Republican lawmakers have also taken action against clean-energy policies. They removed tax incentives for electric vehicles in a major tax and spending law. They also targeted California’s ability to set its own vehicle emission limits.

At the same time, several US carmakers, including GM, have slowed or delayed their plans to expand electric vehicle production in 2025.

While reducing EV investments could save companies large amounts of money, it is still uncertain whether customers will actually benefit from lower prices.

Experts explain possible impact on buyers

Charlie Chesbrough from Cox Automotive said strict fuel standards have made it harder and more expensive for automakers to build cars.

“Meeting high fuel economy standards has been challenging for the auto industry and has added to vehicle cost,” he said.

However, he pointed out that many buyers still prefer fuel-efficient vehicles. “However, consumers like fuel-efficient vehicles. This year traditional hybrids are up double digits from last year while gas vehicles are basically flat,” he added.

He also said that people remain worried about rising fuel prices. “Since most consumers don’t have transportation alternatives available, people fear high gas prices. And good MPG is a way to mitigate that risk.”