Sean Duffy backs Trump's CAFE rollback, projects $1,300 cut in car prices
- Transportation Secretary Sean Duffy backed Trump's rollback of Biden-era CAFE standards, calling the prior rules "CRAZY EV mandates"
- The DOT projects the updated standards will cut average new-vehicle costs by $1,300 for U.S. consumers
- Total consumer savings are projected at $138 billion over five years
- NHTSA estimates a fleetwide average of 34.9 miles per gallon by model year 2031, up from 30.1 miles per gallon for model year 2024
- The rule covers passenger cars and light trucks for model years 2022 through 2031, with CAFE credit trading set to end from model year 2028
*this image is generated using AI for illustrative purposes only.
Transportation Secretary Sean Duffy backed President Donald Trump's decision to roll back corporate average fuel economy (CAFE) standards, with the Department of Transportation projecting a $1,300 reduction in average new-vehicle costs for U.S. consumers.
Duffy slams Biden-era EV mandates
Duffy, posting on social media platform X, said the Department of Transportation (DOT) had "approved updated Fuel Economy Standards," which he said would end the "CRAZY EV mandates" by Joe Biden and Pete Buttigieg. He added the move would cut "costly regulations" for automakers, "lower prices on new cars," and bring jobs to states including Michigan, Ohio, Indiana, and South Carolina.
Key projections from the DOT ruling
The DOT, in an official statement on Monday, outlined several projected outcomes from the updated standards. The following table summarises the key figures disclosed:
| Metric | Projected outcome |
|---|---|
| Average new-vehicle cost reduction | $1,300 per vehicle |
| Total consumer savings over five years | $138 billion |
| Serious injuries prevented | More than 300,000 |
| Deaths avoided | 1,900 |
| Fleetwide average fuel economy by model year 2031 | 34.9 miles per gallon |
| Fleetwide average fuel economy for model year 2024 | 30.1 miles per gallon |
| Reduction in annual oil use in 2050 vs 2024 | About 1.3 billion barrels |
Scope of the new standards
"Thanks to President Trump's leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn't want," Duffy said. The rule sets requirements for passenger cars and light trucks covering model years 2022 through 2031. The DOT also said it plans to end CAFE credit trading beginning in model year 2028.
The agency attributed the projected reduction in serious injuries and deaths to an expected increase in purchases of newer vehicle models under the revised framework.
How might major automakers adjust their long-term electric vehicle production timelines and capital expenditure plans in response to the relaxed CAFE standards?
What legal challenges or state-level regulatory actions are likely to emerge from California and other states committed to stricter emission rules?
Will the projected $1,300 vehicle cost reduction materialize for consumers, or will manufacturers retain the savings to improve profit margins amid ongoing supply chain pressures?
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