Trump moves to scrap Biden-era fuel rules, launches rollback of CAFE standards

Donald Trump

US President Donald Trump has moved to roll back the Biden-era fuel economy rules, launching a formal effort to weaken federal vehicle efficiency standards as part of his administration’s broader shift away from cleaner car requirements.

Speaking at the White House on Thursday alongside senior auto industry executives, Trump said the reversal would bring down prices for buyers and ease regulatory pressure on manufacturers.

“We're officially terminating Joe Biden's ridiculously burdensome, horrible, actually, CAFE standards that impose expensive restrictions,” he said, adding, “And all sorts of problems, all sorts of problems for automakers.”

.@POTUS on terminating the Biden-era CAFE standards that decimated the American auto industry: "Today my administration has taken historic action to lower costs for American consumers, protect American auto jobs, and make buying a car much more affordable for countless American… pic.twitter.com/Ldm2lZPJmJ

— Trump War Room (@TrumpWarRoom) December 3, 2025

The federal Corporate Average Fuel Economy rules, known as CAFE standards, set fuel efficiency benchmarks for new vehicles. In its argument, the Trump administration has said that relaxing them will reduce manufacturing costs and increase affordability for consumers.

“Today my administration has taken historic action to lower costs for American consumers, protect American auto jobs, and make buying a car much more affordable for countless American families,” Trump said.

The decision marks a major policy shift for the auto sector, with officials describing it as an attempt to reverse regulations they say have “decimated the American auto industry.”

The administration has now begun the regulatory process required to significantly ease the existing fuel economy requirements for upcoming vehicle models.