U.S.: regulators move to revoke fuel economy standards

On January 29, 2025, the Secretary of the U.S. Department of Transportation (USDOT) signed an order directing the National Highway Traffic Safety Administration (NHTSA) to reassess fuel economy standards for light-duty vehicles. The directive seeks to roll back Biden-era Corporate Average Fuel Economy (CAFE) standards, which require automakers to increase vehicle fuel efficiency by 2% annually for passenger vehicles from model years (MY) 2027 to 2031 and by 4% for light trucks from MY 2029 to 2031. This action is part of a broader effort by the Trump administration to reverse regulations promoting electric vehicles (EVs) and reducing greenhouse gas emissions.

The Secretary's order argues that the existing regulation