The Trump administration announced plans Wednesday to lower fuel economy standards for cars and light trucks sold in the United States.

With CEOs from Ford and Stellantis in attendance, President Donald Trump proposed rolling back fleet-wide fuel economy to 34.5 miles per gallon for 2031 mode-year cars. The previous fuel economy standard was for new vehicles to have 50.4 mpg by 2031. The regulation change also reclassifies crossovers as cars instead of light trucks.

The National Highway Traffic Safety Administration regulates fuel economy rules under Corporate Average Fuel Economy (CAFE) Standards. Those rules dictate how far vehicles must travel on a gallon of fuel.

Trump also said he would authorize the Department of Transportation to allow automakers to manufacture “really small ca

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