Trump's Unconventional Fuel Economy Plan: A Lifeline for Detroit, Not Consumers

The Trump administration has proposed looser fuel economy standards for vehicles, claiming American families will save $109 billion over five years. However, this figure is problematic and ignores associated costs such as higher fuel bills for thirstier vehicles. The net benefit is estimated at $24 billion or $181 per household over five years. Vehicle prices are high due to supply chain disruptions and inflation, rather than fuel economy efforts. Domestic automakers, such as Ford, GM, and Stellantis, are more likely to pocket any benefits from the proposed rules.