Trump Dismantles ‘Green New Scam’, Reverses Biden-Era Climate and EV Rules Gas Cars Make a Comeback

WASHINGTON, D.C. – President Donald J. Trump on Wednesday unveiled sweeping rollbacks of U.S. vehicle emissions and fuel economy standards, effectively dismantling what his administration calls the “Green New Scam.” The policy shift signals a dramatic return to gasoline-powered cars, reversing key provisions of the prior administration’s climate agenda including mandates on electric vehicles (EVs) and stricter fuel-efficiency requirements.

What’s Changing And Why

• The new plan proposes cutting back the fuel-economy standard for light vehicles to an average of about 34.5 miles per gallon (mpg) by 2031, down from roughly 50.4 mpg under the previous regime.
• The administration argues the prior mileage and emissions mandates increased the cost of new vehicles significantly. By reducing regulatory burdens, it aims to make gasoline-powered cars more affordable, revive consumer choice, and encourage automakers to invest in U.S. plants — a move supporters say will boost jobs and economic growth.
• Major automakers, including Ford Motor Company and Stellantis N.V., welcomed the announcement, calling it “common sense” and expressing relief at being freed from heavy EV-driven regulatory pressure.

The Background From ‘Green Push’ to Rollback

Under the previous administration, stricter fuel economy and emissions standards along with policies encouraging EV adoption were cornerstones of efforts to reduce greenhouse gas emissions, tackle climate change, and modernize the U.S. auto sector. Those policies projected long term fuel savings, lower emissions, and a transition toward cleaner, sustainable transportation.

However, critics argued the regulations drove up the price of cars, limited options for consumers, and imposed what they viewed as heavy compliance costs on automakers. In January 2025, on his first day back in office, Trump signed a series of executive orders reversing many of the previous climate-oriented mandates setting the stage for today’s announcements.

What This Means for Consumers, Industry & Climate

For Consumers & Industry:

• Lower upfront costs on new cars supporters claim the rollback could shave off around US$900–1,000 from the price of new gasoline powered vehicles.
• More production flexibility for automakers. Without stringent EV or fuel-economy mandates, companies may redirect investments to traditional gasoline-powered vehicles and domestic manufacturing, potentially creating jobs.

For Environmental & Climate Policy:

• Reversing fuel efficiency standards and scaling back EV incentives is likely to increase gasoline consumption, push emissions higher, and slow down or reverse efforts made toward decarbonization.
• The policy shift could weaken U.S. participation in global climate efforts, undermining long term sustainability and raising concerns among environmental groups over air quality, emissions, and climate change impact.

What’s Next And What to Watch For

The new fuel economy rules still must undergo the formal rule-making process before they take effect a procedure expected to unfold through 2026–2031. Meanwhile, expect pushback from environmental organizations, some states, and possibly legal challenges, especially given the broader global climate commitments the U.S. previously embraced under agreements such as Paris Agreement.