Trump administration touts policies to lower car prices

Top Trump administration officials visited the Detroit Auto Show to promote efforts aimed at reducing car prices through the rollback of electric vehicle regulations. The moves, part of a broader de-emphasis on EVs, seek to align policies with consumer demand for traditional vehicles amid rising affordability concerns. Officials emphasized that these changes would not target EVs but rather end penalties on combustion engines.

On Saturday, Transportation Secretary Sean Duffy, Environmental Protection Agency head Lee Zeldin, and U.S. Trade Representative Jamieson Greer toured the annual Detroit Auto Show. This visit capped a two-day Midwestern trip that included stops at a Ford truck factory and a Stellantis Jeep plant in Ohio on Friday.

The administration has moved aggressively to undo electric vehicle rules established under former President Joe Biden. Last year, President Donald Trump signed legislation eliminating the $7,500 EV tax credit, rescinding California's EV mandates, and canceling penalties for automakers failing to meet fuel efficiency standards. In December, the U.S. Department of Transportation proposed rolling back Biden-era fuel efficiency standards, which had encouraged more EV production. The EPA is expected to soon finalize a rule eliminating vehicle tailpipe emissions requirements.

Duffy stated that these policies "will bring car prices down and allow car companies to offer products that Americans want to buy." He clarified, "this is not a war on EVs at all … We shouldn’t use government policy to encourage EV purchases all the while penalizing combustion engines." Zeldin echoed this, saying the government "should not be forcing, requiring, mandating that the market go in a direction other than what the American consumer is demanding."

These efforts come as Trump faces economic challenges a year into his term, with midterm elections approaching in November. Average new car prices reached a record $50,326 in December, according to Cox Automotive, driven by demand for trucks and SUVs and fewer entry-level options. Automakers also contend with Trump's tariffs on imported vehicles and parts.

Despite these changes, U.S. vehicle sales increased 2.4% in 2025 to 16.2 million units. The USDOT estimates its proposal would cut average upfront vehicle costs by $930 but raise fuel consumption by up to 100 billion gallons through 2050, adding $185 billion in fuel costs for Americans.

Democrats argue that tariffs and the removal of EV incentives will hurt consumers. Greer countered that car prices are declining and that tariff impacts on supply chains are not reaching buyers. Kathy Harris of the Natural Resources Defense Council criticized the approach, warning, "The oil industry will rake in billions more from cash-strapped Americans who can’t afford to spend more to fuel up their car or truck."

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