Trump May Reportedly Roll Back Biden Era Fuel Economy Rules On Wednesday

• Retail sentiment on Stocktwits around Ford, GM, and Stellantis strengthened ahead of the announcement.
• The new policy is expected to roll back Biden-era regulations implented last year. 
• In the past, the American Petroleum Institute has urged the Trump administration to remove those standards, arguing they disadvantage liquid fuel vehicles.

President Donald Trump is reportedly expected to announce new fuel economy standards on Wednesday afternoon.

According to a CNBC report, the Trump administration plans to propose a significant rollback of rules implemented by the Biden administration last year. Executives from Ford (F), General Motors (GM), and Stellantis (STLA) are expected to attend the White House event. Trump’s official schedule shows that the announcement is expected at 2 p.m. (ET).

Ford’s stock edged 0.4% higher in pre-market trade with retail sentiment trending in ‘bullish’ territory over the past day. GM’s stock moved 0.3% higher and retail sentiment improved to ‘extremely bullish’ from the ‘bullish’ zone. Shares of Stellantis jumped more than 3% and retail sentiment flipped to ‘bullish’ from ‘bearish’ territory.

Biden-Era 50 MPG Target Under Review

Under the standards introduced in 2024, passenger cars and light trucks were required to achieve roughly 50 miles per gallon by 2031. The rules aimed to reduce greenhouse gas emissions and push automakers toward electric and hybrid vehicles.

Trump has previously blamed Biden-era actions, such as drawing down the Strategic Petroleum Reserve, for slowing energy-sector progress. He has also expressed confidence about pushing U.S. gasoline prices down to $2 per gallon. Trump credits his “energy dominance” agenda, which prioritizes expanded oil, gas, and coal production alongside deregulation, for helping drive prices below $3 nationwide. Gasoline is now at a four-year low amid cheap crude and subdued demand.

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