Trump administration lowers US fuel efficiency standards
Under Trump, the US transportation authority has reduced fuel consumption limits for new cars, with implications for both consumers and the environment. In response, 26 US states, counties, and major cities have joined forces and filed a lawsuit. We explore the legal basis and implications of the lawsuit.
Image: Stellantis
The Trump administration has revised US national fuel efficiency standards for new vehicles, a move that affects not only the automotive and environmental sectors but also consumers. Specifically, the National Highway Traffic Safety Administration has lowered the target for the average fleet fuel consumption of new passenger cars and light-duty vehicles by 2031 – from the original 50.4 miles per gallon (approx. 21.4 km/l or 4.67 l/100 km) to 34.9 miles per gallon (approx. 14.8 km/l or 6.74 l/100 km).
While the US Department of Transportation, under the leadership of Sean Duffy, argues that the changes aim to enable manufacturers to produce more affordable vehicles and thus ease financial pressure on consumers, the overall calculation reveals a double burden for both consumers and the environment.
The agency estimates that average manufacturing costs per vehicle could decrease by around $1,289 US dollars (approx. €1,150 euros), potentially leading to lower retail prices. However, at the fuel pump, the effect quickly reverses. Due to the higher permitted fuel consumption under the new regulations, drivers’ fuel costs over a vehicle’s lifetime are expected to increase by an average of more than $1,600 US dollars (approx. €1,430 euros). According to projections, US drivers will collectively miss out on nearly $220 billion US dollars (approx. €196 billion euros) in fuel savings – a sum that will instead benefit oil companies following the adjustment of consumption limits.
Additionally, the e-mobility market is coming under pressure, as the CAFE Credit Trading Programme is set to be discontinued without replacement from 2028. This eliminates a key revenue stream for battery-electric vehicle manufacturers, who previously relied on selling efficiency credits to help finance and develop affordable EVs.
The ecological impact of this development is equally severe. According to official estimates from the US Department of Transportation, the relaxed standards will lead to a 4.6 per cent increase in US gasoline consumption by 2050, equivalent to approx. 458 billion litres. This increased consumption will directly result in higher greenhouse gas emissions and air pollution, while the future costs of climate change damage were not considered in the agency’s analyses.
In response to this action by the US government, a coalition of 26 US states, counties, and major cities, led by California Attorney General Rob Bonta, along with several environmental organisations, has filed a lawsuit with the relevant US Court of Appeals. The plaintiffs accuse the transportation authority of deliberately violating its legal mandate to achieve the maximum feasible efficiency level.
The US Energy Policy Act requires the agency to set efficiency standards at the technically and economically “maximum feasible level.” However, to artificially suppress this maximum, the agency allegedly ignored millions of electric vehicles already on the road in its calculations and concealed flaws in its analyses of vehicle safety and affordability.
The upcoming legal proceedings will now determine whether the controversial regulation will stand or must be revised in the interest of consumer and climate protection.