The Trump administration has revised America’s national fuel efficiency standards for new vehicles, a move that affects not only the automotive and environmental sectors but also consumers. Specifically, the National Highway Traffic Safety Administration has reduced the average fleet fuel consumption target for new passenger cars and light vehicles for 2031, from the original 50.4 miles per gallon (approx. 21.4 km/l or 4.67 l/100 km) to 34.9 miles per gallon (approx. 14.8 km/l or 6.74 l/100 km).
While the U.S. Department of Transportation, under the leadership of Sean Duffy, maintains that the changes are intended to allow manufacturers to produce more affordable vehicles and thus relieve financial pressure on consumers, the overall calculation reveals a double burden for both consumers and the environment.
The agency estimates that average manufacturing costs per vehicle could decrease by about US$1,289 (approximately €1,150), which could lead to a reduction in retail prices. However, at the fuel pump, the effect is quickly reversed. Due to the higher fuel consumption permitted under the new regulations, drivers’ fuel costs over the life of the vehicle are expected to increase by an average of more than 1,600 US dollars (approximately 1,430 euros). According to projections, American drivers will collectively miss out on almost US$220 billion (approximately €196 billion) in fuel savings, a sum that will benefit oil companies after the adjustment of consumption limits.
Additionally, the electric mobility market is under pressure as the CAFE Credit Trading Program will be suspended without replacement starting in 2028. This eliminates a key revenue source for battery electric vehicle manufacturers, who previously relied on the sale of efficiency credits to help finance and develop affordable electric vehicles.
The ecological impact of this development is equally severe. According to official estimates from the US Department of Transportation, the relaxed standards will lead to a 4.6 percent increase in US gasoline consumption through 2050, which is equivalent to approx. 458 billion liters. This increased consumption will directly result in increased greenhouse gas emissions and air pollution, while the future costs of climate change damages were not considered in the agency’s analyses.
In response to this action by the US government, a coalition of 26 states, counties and major US cities, led by California Attorney General Rob Bonta, along with several environmental organizations, has filed a lawsuit with the US Court of Appeals. The plaintiffs accuse the transportation authority of willfully violating its legal mandate to achieve the highest level of feasible efficiency.
The U.S. Energy Policy Act requires the agency to set efficiency standards at the “maximum practicable level” technically and economically. However, to artificially suppress this maximum, the agency allegedly ignored millions of electric vehicles already on the road in its calculations and concealed flaws in its vehicle safety and affordability analyses.
Upcoming court proceedings will now determine whether the controversial regulation remains in place or should be reviewed in the interests of consumers and climate protection.
oag.ca.gov, www.cnbc.com
