As the U.S. auto industry adjusts to changing consumer preferences and rising car prices, Trump administration officials are signaling a return to looser fuel efficiency regulations. During a two-day Midwest tour, top figures criticized Biden-era environmental policies, arguing they inflate vehicle costs and limit consumer freedom.
The visit, timed with the Detroit Auto Show, highlights a widening policy divide on the future of transportation. The current debate touches on broader economic and political themes, from energy independence and climate policy to manufacturing competitiveness and federal oversight.
Rollback of Fuel Economy Standards Aims to Cut Vehicle Costs
U.S. Transportation Secretary Sean Duffy led the Trump team’s Midwest outreach, emphasizing a strategy focused on reducing regulatory burdens for automakers. Speaking from a Jeep plant in Ohio, Duffy described the Biden administration’s fuel economy rules as “illegal and unattainable,” referencing the 35 miles-per-gallon average required under revised emissions standards.
According to The Detroit News, Duffy said the rollback is intended to allow automakers more flexibility in vehicle design and pricing, arguing that “bringing prices down” would help meet market demand. “I want consumer demands to drive the kinds of cars that are produced,” he added.
The rollback also includes the elimination of penalties imposed on manufacturers who fall short of fuel economy targets. In tandem, a $7,500 federal tax credit for electric vehicles was revoked under legislation signed by President Donald Trump last year. Trump’s administration also moved to rescind California’s independent emissions standards, effectively limiting state influence over national auto policy.
While the Biden administration has defended stricter fuel rules as necessary to combat climate change and push innovation, Trump-era officials argue they result in fewer affordable vehicles on the market. The average price of a new car in the U.S. hit $50,326, according to Cox Automotive, reflecting rising consumer demand for SUVs and trucks over compact, fuel-efficient models.
Resistance to EV Mandates Tied to Consumer Choice and Manufacturing Freedom
Alongside Duffy, EPA Administrator Lee Zeldin and U.S. Trade Representative Jamieson Greer reiterated the administration’s position against electric vehicle mandates. Touring the Detroit Auto Show, Zeldin said federal policy “should not be forcing, requiring, mandating that the market go in a direction other than what the American consumer is demanding.”
Zeldin’s remarks underline a growing skepticism within conservative circles over government support for electric vehicles. He emphasized that while EVs can thrive on their own merits, they shouldn’t be favored through subsidies or regulatory pressure.
Duffy echoed this, stating: “This is not a war on EVs at all. There’s a lot of people that love them, and think they’re wonderful and they work for them, and they should be able to buy them. It’s just that we shouldn’t use government policy to encourage EV purchases, all the while penalizing the combustion engine, which most Americans want to buy.”
This message comes as sales trends show Americans continuing to prefer larger vehicles despite environmental concerns. The 2.4% increase in U.S. vehicle sales occurred in spite of tariffs on imported cars, according to Cox Automotive. Greer noted that the tariffs’ impact on prices appears limited: “Whatever effects those tariffs may have on various parts of the supply chain, they’re not really getting down to the consumer.”
The Trump team’s emphasis on deregulation and market-driven policy contrasts sharply with the Biden administration’s climate-centered approach to transportation. As both parties prepare for the 2026 elections, the future of auto regulation is likely to remain a point of contention, not only for lawmakers but also for the millions of Americans deciding what kind of vehicles to buy.
