The Trump administration on Monday finalized sharply lower fuel economy standards for cars and light trucks, reversing aggressive targets set under the prior administration.

President Trump announced Saturday that he had approved the changes, which he said would terminate what he described as an electric vehicle mandate. Transportation Secretary Sean Duffy previewed the Monday announcement on social media, calling it a major victory for American auto workers.

The new standards from the National Highway Traffic Safety Administration set a fleetwide average of roughly 34.5 miles per gallon for light-duty vehicles in model year 2031. This replaces the Biden-era requirement of 50.4 miles per gallon. The rule also includes retroactive adjustments to earlier model years and modest annual increases of 0.25 to 0.5 percent through 2031.

Trump stated the standards would remove waste from vehicle manufacturing and lower prices for American families. He claimed the changes would save consumers thousands of dollars per vehicle while supporting expanded domestic production. Automakers including General Motors, Ford, and Stellantis have expressed interest in growing U.S. operations under the revised framework, according to the president.

The rollback aligns with broader Trump administration efforts to reduce regulatory burdens on the auto industry. Congress previously eliminated civil penalties for noncompliance with fuel economy rules, limiting the practical impact of the prior standards. Officials estimate the new approach will reduce average new vehicle costs by around $930 compared with previous projections.

Critics argue the changes will increase overall fuel consumption and emissions over time. The administration maintains that market-driven choices, rather than government mandates, best serve consumers and workers by prioritizing affordable, safe gasoline-powered vehicles alongside other options.

The final rule comes amid ongoing efforts to unwind prior policies on vehicle emissions and incentives. It reflects the administration's focus on lowering costs of living and bolstering U.S. manufacturing competitiveness.