Trump team says rolling back emissions will lower U.S. car prices

Senior administration officials spent a Midwest auto-industry tour promoting a shift in federal auto policy they say will make vehicles more affordable by rolling back emissions and fuel-efficiency rules and de-emphasizing electric vehicles. The message, delivered at plants and media events across the region, framed the actions as a response to high sticker prices and mounting monthly payments squeezing buyers.

Transportation Secretary Sean Duffy, speaking to reporters at a Jeep plant in Ohio, said the administration was “rolling back what I would argue is illegal and unattainable for a fuel economy standard,” and warned the government should not dictate “what kind of cars are built in the U.S.” EPA Administrator Lee Zeldin and U.S. Trade Representative Jameson Greer also took part in meetings with automakers and the media, underscoring the administration’s coordinated outreach to the industry. Senator Shelley Moore Capito reiterated the political rationale, saying bans on gas-powered cars “lack common sense.”

The administration pointed to three concrete actions taken since last year: Congress and the White House eliminated the $7,500 federal EV tax credit, federal policy rescinded California’s stricter EV rules, and penalties for automakers that failed to meet prior fuel-efficiency mandates were canceled through recent legislation. Officials argued the combination of these moves will reduce manufacturing costs and broaden lower-priced vehicle options for consumers.

Market data has been central to the administration’s pitch. Average transaction prices for new vehicles hit $50,326 in December, while typical monthly payments have risen into the high $700s—Cox Automotive quoted a $767 typical payment and industry tracker Edmonds cited an average monthly payment of $781. Lenders report that roughly one in five auto loans now carries a payment of $1,000 or more. Administration officials contend that easing regulatory requirements will lower upfront vehicle costs and ease these financing pressures.

Automakers including General Motors, Ford and Stellantis engaged with the tour, part of an effort by the administration to portray reduced mandates as aligning federal policy with market demand. Industry executives have previously warned that abrupt regulatory changes can complicate product planning and investment decisions, particularly for powertrain development and supply chains concentrated around batteries and electric drivetrains.

Critics of the rollback say the administration’s focus on near-term sticker prices overlooks lifetime ownership costs, emissions outcomes and the pace of global industrial transition. Analysts note that lower fuel-efficiency standards can increase consumers’ fuel expenditures over time and that revoking incentives for EVs may slow investment in U.S. battery manufacturing and charging infrastructure. The administration’s presentations did not include new independent modeling quantifying trade-offs between lower upfront prices and long-run fuel costs or emissions.

Policy experts say further steps will require rulemaking or new legislation and could trigger legal challenges from states or environmental groups if federal agencies alter previously adopted standards. The political timing is clear: officials framed the initiative as an affordability priority tied to inflation concerns ahead of the 2026 midterm elections, seeking to place consumer cost burdens at the center of the debate.

The coming months will test whether the administration’s regulatory posture persuades consumers or reshapes automakers’ production plans. For buyers, the key economic question remains whether any near-term price relief will offset higher operating costs and whether changes in federal policy will translate into more lower-priced models on dealer lots.