US to Lower Vehicle Fuel Economy Mandate to 34.5 MPG by 2031

The Trump administration will soon announce sharply lower fuel-economy standards for new vehicles, a significant policy reversal that eases requirements for automakers. Transportation Secretary Sean Duffy confirmed the move on Monday, stating the goal is to align regulations with consumer demand.

Details of the New Standard

The upcoming rule change reflects a December proposal from the National Highway Traffic Safety Administration (NHTSA). It would require automakers to achieve a fleetwide average of 34.5 miles per gallon (mpg) by 2031.

This marks a substantial reduction from the standard set by the prior administration, which mandated a more aggressive target of 50.4 mpg for the same period. The new, less stringent requirements would apply to vehicles from model years 2022 through 2031, according to the initial proposal.

Policy Rationale and Market Impact

Speaking at an event in Michigan, Secretary Duffy framed the decision as a "common-sense fuel economy standard." He added, "We want Detroit to build cars that Americans want to buy -- not cars that Democrats want Washington to build," attributing the policy shift to a desire to favor consumer preference for larger vehicles over federally mandated efficiency targets.

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For automakers, the relaxed standards could lower compliance costs and reduce the pressure to accelerate the production of electric vehicles and highly efficient internal combustion engines. This policy shift directly impacts major US and foreign car manufacturers by altering the long-term product planning and investment landscape for the American market.

Reversing Course on Emissions

The move represents a clear departure from the environmental and energy policies of the former Biden administration. The previous, higher standards were designed to reduce gasoline consumption, lower carbon emissions, and encourage a faster transition to electric vehicles.

This regulatory rollback signals a different path, prioritizing manufacturing flexibility and what the administration views as consumer choice. The final rule's announcement is expected shortly, formalizing a significant change in federal oversight of the auto industry.