Trump Could Clamp Down on EVs Even More with New Fuel Economy Rules

May 26, 2025

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by Rob Stumpf (Inside EVs) Trump is targeting EVs in new fuel economy rules. ... Now, Trump's U.S. Transportation Department seems to be going after fuel economy rules that were used by the Biden administration as a key driver of zero-emission cars. Sounds complicated? We're here to explain.

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30%: Trump Targets Biden Fuel Economy Rules That Inlcuded EVs

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In reality, the Corporate Average Fuel Economy (CAFE) Program—which requires automakers to meet a certain threshold for minimum average fuel economy across their fleets—was to get so strict that by the mid-2030s, the car companies would have to invest very heavily in electrification to meet those targets.

At one point, the average for passenger vehicles and light trucks was supposed to hit approximately 50.4 miles per gallon by 2031. You're going to need a lot of hybrids to pull that off, or EVs, which don't use fuel at all and thus drive the average down significantly.

But the Trump administration has consistently been a pro fossil-fuel one, and now, it's targeting the very idea of including EVs in CAFE standards at all. Here's Reuters with more detail:

Transportation Secretary Sean Duffy said the department’s National Highway Traffic Safety Administration on Friday submitted its interpretive rule, “Resetting the Corporate Average Fuel Economy Program” to the White House for review.

The prior administration had “illegally used CAFE standards as a backdoor electric vehicle mandate—driving the price of cars up,” he said in a statement.

Removing EVs from the calculations for credits and the regulatory mandates could result in lower overall fuel economy requirements.

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US expected to declare Biden fuel economy rules exceeded legal authority (Reuters)
Trump’s Transportation Secretary Sean P. Duffy Announces Key Step Towards Building Cars in America Again (U.S. Department of Transportation)

Excerpt from U.S. Department of Transportation: New CAFE Interpretive rule will clarify NHTSA’s authority to reset illegal regulation -- U.S. Transportation Secretary Sean P. Duffy today (May 19, 2025) announced the National Highway Traffic Safety Administration recently submitted the interpretive rule, “Resetting the Corporate Average Fuel Economy Program (CAFE),” to the Office of Information and Regulatory Affairs for review. This is a key step towards reversing the prior administration’s illegal interpretation of CAFE standards that made cars more expensive for working class families.

“Under President Trump’s leadership, we are making life more affordable with cars made in America again. The Biden-Buttigieg administration illegally used CAFE standards as a backdoor electric vehicle mandate – driving the price of cars up. Resetting CAFE standards as Congress’ intended will lower vehicle costs and ensure the American people can purchase the cars they want,” said U.S. Transportation Secretary Sean P. Duffy.

You can learn more about the rule at the Office of Management and Budget’s RegInfo website. READ MORE