President Trump’s Revision of CAFE Standards
On December 3, 2025, President Donald J. Trump announced a revision of the Corporate Average Fuel Economy (CAFE) standards, reversing the policies set by the previous administration. This change seeks to establish fuel economy requirements that can be met by conventional gasoline and diesel vehicles, in response to criticisms of the prior administration’s standards as unrealistic. The Trump Administration contends that these previous standards would result in higher costs for consumers, especially due to a shift towards electric vehicles (EVs), which are viewed as financially burdensome because of their higher production costs.
The new CAFE standards are forecasted to save American families around $109 billion over the next five years by averting increases in the average price of new cars. The administration claims that if the previous standards had remained, consumers might face an increase of nearly $1,000 per vehicle. Furthermore, the revised standards are anticipated to enhance safety, with projections suggesting that they could save more than 1,500 lives and prevent up to 250,000 serious injuries through 2050 by facilitating the sale of newer vehicles.
This announcement is part of a wider initiative by the Trump Administration to counter policies perceived as harmful to American consumers and the automotive sector. Earlier in 2025, President Trump took steps to dismantle California’s EV mandates and adjust penalties related to CAFE standard violations. The administration insists that updating these standards demonstrates a commitment to providing practical solutions for American families while allowing the automotive industry to function under sustainable and achievable requirements.
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