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The Trump administration plans to issue new regulations on Monday to relax the strict fuel efficiency standards implemented during the Biden administration. Trump stated that this move aims to boost the U.S. auto industry and reduce vehicle purchase costs for consumers, with several automotive executives present during the announcement. The new regulations will significantly lower the average fuel efficiency standard for 2031 model year vehicles from 50.4 miles per gallon under Biden to 34.5 miles per gallon. This is expected to reduce the average cost of new vehicles by approximately $930, but will result in an increase of about 100 billion gallons in U.S. fuel consumption by 2050, an additional $185 billion in consumer fuel expenditures, and a roughly 5% increase in carbon dioxide emissions.
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