Looming questions for automakers ahead of Trump fuel economy rollback

The Trump administration is expected to finalize sharply relaxed U.S. fuel economy standards for passenger vehicles and light trucks in the coming days, raising questions about affordability, competitiveness and long-term stability for automakers. Analysts expect the rules to largely match a late-2025 proposal, lowering light-duty corporate average fuel economy (CAFE) to a fleetwide average of about 34.5 miles per gallon through the 2031 model year, down from roughly 50 mpg under Biden-era targets. Transportation Secretary Sean Duffy said on Aug. 31 in Sterling Heights that the goal is a “common-sense” standard. Critics and some industry observers warn that regulatory swings “whipsaw” the sector, complicating planning for OEMs and consumers.