The President of the USA, Donald Trump, signed this Wednesday, 3, an executive order to drastically reduce fuel economy requirements by 2031. “We are ending Biden-era automotive standards,” said the Republican at a press conference, which was attended by executives from giants such as Ford and Stellantis.
The administration’s move comes months after Congress virtually nullified Corporate Average Fuel Economy (CAFE) mandates, eliminating fines for violating those rules.
The federal government will now require an average of 34.5 miles per gallon for vehicles through the 2031 model year, below the 50.4-mile standard set by former President Joe Biden.
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According to Trump, the new measures aim to protect the American auto industry and reduce costs for consumers. “I believe our auto industry will be bigger than before; automakers have invested in the U.S. in part because of the tariffs,” he added.
The president also commented that the US will authorize the production of ultra-compact cars, after observing this type of model during his visit to South Korea, Japan and Malaysia. “This is a tremendous market for us.”
In the energy sector, the Republican stated that the US will have the largest share of the chip market “very soon”, amid the development of domestic data centers.
