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Trump proposes slashing fuel economy rules to boost gas cars

December 05, 2025

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Business World Philippines

President Donald J. Trump on Wednesday proposed slashing fuel economy standards that former President Joseph R. Biden had finalized last year, in a push to make it easier for automakers to sell gasoline-powered cars.

Mr. Trump’ action aims to undo one of Mr. Biden's signature climate moves as he sought to incentivize more electric vehicle (EV) purchases. “People want the gasoline car,” Mr. Trump said.

The National Highway Traffic Safety Administration (NHTSA) proposed significantly reducing the fuel economy requirements from model years 2022 to 2031, requiring 34.5 miles per gallon on average by 2031, down from 50.4 miles per gallon (21.4 km per liter).

NHTSA is proposing to revise down the 2022 fuel economy standards and then proposing to hike them between 0.25% and 0.5% annually through 2031. In 2022, under Mr. Biden, NHTSA increased fuel efficiency by 8% annually for model years 2024-2025 and 10% for 2026.

Mr. Biden’s rules sought to prod automakers to build a rising number of EVs to comply but would not have forced an immediate end to gas-powered vehicles.

NHTSA estimates the proposed rule would reduce average upfront vehicle costs by $930 but would increase fuel consumption by around 100 billion gallons through 2050 — and cost ‘Americans up to another $185 billion for fuel and increase carbon dioxide emissions by about 5%.

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