Trump Administration To Roll Back Biden Fuel Efficiency Standards

As Ford Authority reported earlier the year, the Biden Administration’s U.S. Energy Department (DOE) and Environmental Protection Agency (EPA) recently finalized new rules on fuel economy and emissions standards – though the agencies also softened those rules based on pushback from certain lobby groups and automakers. That list didn’t include Ford, which has publicly supported stricter standards, though The Blue Oval stands to benefit from those revisions, regardless. However, following the 2024 U.S. election that resulted in Donald Trump emerging victorious, those plans now look likely to change.

According to Reuters, President-elect Trump is planning to roll back these standards, which call for new vehicle fuel economy averages to increase two percent each year for 2027-2031 model year passenger cars, as well as light trucks built in the 2029-2031 model years. As for heavy-duty pickup trucks and vans, fuel efficiency was slated to increase by 10 percent per year for the 2030-2032 model years and eight percent annually for those produced in the 2033-2035 model years. Additionally, Trump is also reportedly targeting rules that would require that 56 percent of all new vehicles sold by 2032 be fully electric, coupled with at least a 13 percent mix of plug-in hybrids, partially-electric vehicles, and more efficient ICE models.

These moves are among several that Trump is mulling in regard to the automotive industry, including a reported desire to kill off the current $7,500 clean energy tax credit implemented as part of the Inflation Reduction Act of 2022. During his campaign, Trump stated that he wanted to end this EV tax credit on multiple occasions, instead using funds allocated for that purpose to extend tax cuts that are slated to expire in the coming months.

Trump has also stated that he is considering implementing tariffs on vehicles imported from Mexico, ranging from 100-200 percent, which could have a big impact on automakers including Ford, General Motors, and Stellantis if that ultimately happens, given the variety of models each produces in that country for the U.S. market. Meanwhile, a handful of other companies are awaiting final decisions on all of these topics, including Chinese battery maker CATL, which is considering building plants in the U.S. if it’s ultimately allowed to do so.