In an Oval Office meeting, Ford CEO Jim Farley spoke to thank President Donald Trump for his proposal to rollback Biden-era fuel efficiency standards.
- The Trump administration is rolling back federal fuel economy standards to lower new car prices.
- Despite a previous rollback in 2017, the average price of a new car has increased significantly.
- Environmental and consumer groups argue the move will increase pollution and that federal standards have a minimal effect on vehicle prices.
For the second time in a half decade, President Donald Trump is slashing federal fuel economy standards in a bid to lower sticker prices for car buyers.
The White House announced on Thursday, Feb. 12, that the U.S. Environmental Protection Agency has finalized a new rule that will rescind an Obama-era scientific finding that greenhouse gas emissions from cars and other sources pose a threat to public health.
The 2009 finding, known as the endangerment finding, has provided the legal basis for the federal government's most ambitious efforts to slash planet-warming car emissions, including rules that currently require automakers to achieve an average of more than 50 miles per gallon for all the cars across their fleets.
Trump promises that rolling back stringent fuel economy rules will allow automakers to make cheaper cars.
"This action will eliminate over $1.3 trillion of regulatory costs and help bring car prices tumbling down dramatically," Trump said in the Feb. 12 White House event announcing the action. "You're going to get a better car, you're going to get a car that starts easier, a car that works better for a lot less money."
With that in mind, the USA TODAY Cars team took a look at what happened to car prices the last time Trump rolled back federal fuel economy standards and what car shoppers can expect this time.
What happened last time Trump rolled back federal fuel rules?
In March 2017, Trump first announced his plan to roll back stringent fuel economy rules that were enacted under former President Barack Obama that would have required automakers to achieve fleetwide averages of 54.5 miles per gallon by 2025. When Trump made that announcement, the average price of new car was $34,342, according to Kelley Blue Book.
Trump's first rollback resulted in federal fuel-mileage standards being frozen at about 39 miles per gallon for model years 2021 to 2026. The average price of a new car in January was $49,191, according to Kelley Blue Book.
When former President Joe Biden took office in January 2021, he moved almost immediately to restore the stringent Obama-era fuel economy standards. Biden eventually settled on a plan that was announced in August 2021 that would have required automakers to achieve fleetwide averages of around 50 miles per gallon by 2031. The average price of a new car then was $43,355.
Trump says his new proposal would eliminate all federal regulation of auto emissions.
What people are saying about Trump's fuel economy rollback
Environmentalists have decried Trump's move to gut federal regulation of air pollution from cars, saying that it will make cars dirtier and slow the nation's transition to electric vehicles.
"It is irresponsible and deadly for the administration to ignore the evidence of climate change and gut policies designed to curb climate emissions," Sierra Club Clean Transportation for All Director Katherine García said in a statement.
"Science shows that urgently transitioning to electric vehicles is imperative to protect our health and our climate at the pace required," García continued.
Daniel Greene, senior director of consumer protection and product safety at the National Consumers League, which describes itself as the nation's oldest consumer advocacy organization, said U.S. families should not have to "choose between safety, fuel efficiency, and vehicle affordability."
"Federal safety and fuel economy standards save households thousands of dollars over the life of their vehicle while having a marginal effect on vehicle prices," Green said.
Green said the true culprits of sticker shock at car dealerships are "production of more luxurious models, more expensive vehicle mix, and showroom markups," not federal emission rules.
Stephanie Valdez Streaty, director of industry insights at Cox Automotive, agreed, saying in a statement provided to USA TODAY that "historically, changes to fuel‑economy or emissions rules do not translate into material sticker‑price relief for consumers."
"Historically, new-vehicle prices increase an average of approximately 3% a year, and changes in regulations have not significantly altered that long-term trend," she said. "The truth is, politics can move much faster than the auto industry. Changes to policy and regulations tend to impact auto production gradually, over multiple model years rather than a sudden price reset."