TOI Correspondent from Washington: In a move that deepens the environmental divide between the United States and much of the world—particularly fast-growing green economies such as China and India—US President Donald Trump on Wednesday announced a sweeping rollback of American fuel-economy standards. The decision, experts say, effectively shifts a significant portion of the global decarbonisation burden onto other nations at a time when developing countries are accelerating the transition to electric mobility and renewable energy.
At a White House meeting flanked by the CEOs of Ford and Stellantis, Trump dismissed longstanding US climate commitments under the Obama and Biden administrations as a “green new scam” and slashed Corporate Average Fuel Economy (CAFE) targets from 50.4 miles per gallon (mpg) by 2031 to just 34.5 mpg—returning to levels last seen in 2022. The rollback builds on the earlier Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule, which had already replaced Obama-era efficiency gains of roughly 5% annually with a lenient 1.5% requirement.
Analysts warn the regulatory retreat locks the US into greater petroleum dependence throughout the next decade, ensuring American drivers consume billions of additional barrels of oil and emit hundreds of millions of tonnes of avoidable carbon dioxide. This stands in sharp contrast, they note, to rapid clean-energy transitions underway across Asia, where developing economies are outpacing the US in electric-vehicle production, adoption and renewable-energy deployment.
Trump framed the rollback as a win for workers and consumers, calling previous standards “ridiculously burdensome” and costly. Backed by automakers that have lagged in the global EV race, the administration argued that stringent rules forced companies to integrate expensive technologies, raising sticker prices for new cars. By easing compliance, the White House said, automakers would be able to offer cheaper, newer and safer fuel-powered vehicles.
The administration also cast older standards as part of what it claimed was an overzealous national push toward electric vehicles. “It’s a quest to end the gasoline-powered car,” Trump said, hailing the reversal as a repudiation of the “Green New Scam.”
For China and India, the US decision is both a geopolitical setback and a source of frustration. Between them, the two countries—home to nearly a third of the global population—have made major strides in renewable expansion and electrified transport, often surpassing expectations under the Paris Agreement.
China remains the world’s undisputed EV leader, whupping U.S in the field despite Elon Musk's effort. It sold more than 11 million electric vehicles in 2024—a 40% surge—with 2025 projections showing EV sales poised to overtake internal combustion engines for the first time. The country added 510 gigawatts of renewable capacity in 2024 alone, while wind and solar generation climbed to 2,073 terawatt-hours as of mid-2025. China invested $625 billion in clean energy in 2024—31% of the global total—achieving its 2030 renewable targets six years early.
India, on its part, is expanding renewables at an even faster clip than China. With annual clean-energy growth of 16%, New Delhi is on track to double renewable capacity to about 360–380 GW by 2030. It added 17 GW of solar capacity last year and is pushing toward a 500 GW non-fossil target. EV sales crossed two million units in 2024, largely driven by two-wheelers that are helping cut pollution in cities such as New Delhi, which again made international headlines this week for hazardous air quality.
Globally, the US reversal is widely viewed as climate indulgence—prioritising short-term domestic cost savings over long-term planetary stability. Even within the US, several states criticised the move. Washington State Senator Maria Cantwell called it “short-sighted,” warning it would worsen pollution, undermine public health and stall job growth in clean-tech industries.
Analysts say the rollback sends a clear geopolitical signal: by resisting domestic climate action, Washington is effectively shifting a disproportionate share of global emissions-reduction responsibility onto developing nations that are already bearing the brunt of climate-related disasters. For countries balancing economic growth with severe pollution challenges, the US stance is viewed as strategic abandonment by the world’s largest historical emitter—one that risks widening the global climate gap at a critical moment.
Rajghatta is author of Kamala Harris: Phenomenal Woman
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