Trump proposes weaker vehicle mileage rules, cutting climate policies

United States President Donald Trump has announced a proposal to weaken vehicle mileage rules for the auto industry, loosening regulatory pressure on car makers to control pollution from petrol-powered cars and trucks.

The plan was announced on Wednesday. If finalised next year, it would significantly reduce fuel economy requirements, which set rules on how far new vehicles need to travel on a gallon (3.8 litres) of petrol, through the 2031 model year.

The rules will increase Americans’ access to the full range of petrol vehicles they need and can afford, officials said. The administration projects that the new standards would set the industry fleetwide average for light-duty vehicles at roughly 34.5 miles (65.5km) per gallon in the 2031 model year. That frees up car makers to produce larger vehicles like sports utility vehicles, which are more profitable than smaller cars.

The move is the latest action by the Trump administration to reverse policies from the era of former Democratic President Joe Biden that encouraged cleaner-running cars and trucks, including electric vehicles (EVs). Burning petrol for vehicles is a major contributor to planet-warming greenhouse gas emissions, and in the US, it is the largest contributor.

Trump announced the plan at a White House event that included top executives from the three largest US automakers, who have praised the planned changes. The auto industry has complained that the Biden-era rules were difficult to meet.

Since taking office in January, Trump has relaxed auto tailpipe emissions rules, repealed fines for automakers that do not meet federal mileage standards and terminated consumer credits of up to $7,500 for electric vehicle purchases.

Ford CEO Jim Farley said in a statement that the planned rollback was “a win for customers and common sense”.

“As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability,” Farley said.

Stellantis CEO Antonio Filosa said the automaker appreciates the administration’s actions to “realign” the standards “with real-world market conditions”.