On December 4, U.S. President Trump unveiled a plan to significantly roll back fuel economy regulations for passenger cars. Addressing the nation from the Oval Office, he declared his intention to formally rescind the Corporate Average Fuel Economy (CAFE) standards set by the Biden administration. Trump contended that these standards were excessively stringent and failed to deliver the intended results. Present at the announcement were the CEOs of Ford Motor and Stellantis.

Since their inception in 1975, CAFE standards have been gradually strengthened to enhance vehicle fuel efficiency. The Biden administration had mandated that automakers boost the average fuel efficiency of passenger cars and light trucks to roughly 50 miles per gallon by 2031. This move was aimed at fostering the production and sale of electric vehicles across the United States. Conversely, the new standards proposed by the Trump administration, as outlined by the National Highway Traffic Safety Administration, would only require an average of about 34 miles per gallon by 2031.