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December 3, 2025regulatoryEnergy PolicyEnvironmental RegulationTrade Policy

Trump Resets CAFE Fuel Economy Standards, Slashing Biden's 50 MPG Target to 34.5 MPG

The Trump administration announced it would reset Corporate Average Fuel Economy (CAFE) standards to a 2022 baseline, requiring only 0.5% annual efficiency increases through 2031 — down from Biden's 2% per year mandate targeting 50 MPG. Trump made the announcement flanked by Ford, GM, and Stellantis executives, framing it as relief from "burdensome" rules. Environmental groups warned the rollback would increase U.S. emissions as Chinese EV exports accelerated globally.