Federal fuel standards have just been rolled back under the Trump administration. This move overturns the strict Corporate Average Fuel Economy requirements set by the previous administration, which Trump claims would have pushed families into electric vehicles while adding more than $1,000 to the price of cars.
According to Trump, the rollback will save Americans $109 billion simply by allowing manufacturers to continue producing gasoline-powered vehicles that most consumers actually want.
Trump stated, “The greatest scam in American history, the Green New Scam. And it’s a quest to end the gasoline-powered car and people want the gasoline car. They want everything. They want electric.
They want to have lots of alternatives.” Under Biden, CAFE requirements had been increased by 8% for 2024 and 2025 models, and 10% for 2026 models. Trump’s team argues that these standards were not achievable with current internal combustion engine technology and effectively forced a shift toward EVs that most Americans do not desire.
Automakers can now structure their lineups around actual consumer demand instead of scrambling to meet government mandates favoring electrification. Stellantis CEO Antonio Filosa said the changes give customers “the freedom to choose the vehicles they want at prices they can afford.”
This translates into more trucks, more SUVs, and more affordable sedans without pressure to integrate batteries into every model to satisfy unattainable fleet efficiency targets.
Ford CEO Jim Farley praised the rollback for aligning standards with market realities while still allowing progress on emissions. GM has expressed support for regulations that offer long-term stability rather than sudden policy swings with each administration.
This policy shift signals a decisive stance on what kinds of vehicles America will manufacture and drive over the next decade. A unified national standard that respects consumer choice gives manufacturers the certainty needed for billion-dollar investment decisions.
The alternative would have been a patchwork of state regulations, led by California’s plan to ban gas vehicles by 2035, a plan that Trump has also dismantled.
The key question is whether this rollback provides the stability automakers claim to need or merely sets the stage for another policy reversal if political winds shift.
Ford, GM, and Stellantis are betting that producing vehicles aligned with consumer demand, still overwhelmingly gasoline-powered, rather than government preferences will keep American manufacturing competitive. This reset allows them to continue building exactly what people want to buy.
