A US official said new Corporate Average Fuel Economy standards are slated for release Monday, pushing forward the Trump administration's plan. Trump first announced the changes in December while standing with several auto executives. Transportation Secretary Sean Duffy amplified the timing on Saturday, saying in a social media post that a "major victory for America's auto workers is COMING MONDAY." Trump has framed the shift as a way to strengthen domestic carmakers and reduce what buyers pay.
If Monday's final rule lines up with the original proposal, automakers would face a 2031 model year average of 34.5 miles per gallon instead of roughly 50 mpg. The Biden-era requirements were part of a broader plan to accelerate electric vehicle production and purchases. Easing the targets would mark a significant win for auto and oil interests that argued the current rules stretch today's technology and effectively nudge buyers away from gasoline-powered models.
Diesel prices just set a record, and gasoline climbed to a new all-time September high, a run-up attributed to hostilities involving Iran and to Russia's invasion of Ukraine. The jump is affecting the wider US economy. Trump administration officials are reviewing options to rein in fuel costs ahead of the November midterm elections, as rising living expenses weigh on Republicans' chances of keeping control of Congress. One idea on the table is banning diesel exports, though energy experts say that would likely offer only temporary relief before pushing prices even higher.
Environmental advocates say the rollback would mean higher fuel bills. "With Americans struggling to afford gasoline that is more than $4 a gallon, the Trump administration is going to force them to pay more at the pump," said Atid Kimelman, an attorney at Natural Resources Defense Council. "Oil companies will get a windfall from gutting the fuel economy standards, but the rest of us are going to be handing over more of our hard-earned paychecks to fill up the tank."
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If the standards land as proposed, expect ripple effects across car prices, fuel demand, and what you pay to fill up. That hits household budgets long before it shows up in quarterly earnings.
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