Trump officials push for cheaper cars through regulatory rollbacks during Midwest tour

Trump administration officials this week touted efforts to lower car prices through regulatory rollbacks and the deemphasizing of electric vehicles during a Midwest auto industry tour.

"In this administration, we are rolling back what I would argue is illegal and unattainable for a fuel economy standard," U.S. Transportation Secretary Sean Duffy told reporters Friday at a Jeep plant in Ohio, The Detroit News reported.

Duffy was referring to ambitious vehicle emissions regulations put in place during the Biden administration.

Duffy added, "Thirty-five miles to the gallon for this new fuel economy standard ... which is going to, I think, bring prices down and going to allow car companies to offer products that Americans want to buy."

SMALL BUSINESS ADMINISTRATION UNVEILS NEW INITIATIVE TO ROLL BACK FEDERAL REGULATIONS

Duffy, along with Environmental Protection Agency (EPA) head Lee Zeldin, and U.S. Trade Representative Jamieson Greer, toured the annual Detroit Auto Show to close out their two-day Midwestern swing on Saturday.

Zeldin said the government "should not be forcing, requiring, mandating that the market go in a direction other than what the American consumer is demanding" months after President Donald Trump signed legislation last year eliminating a $7,500 EV tax credit and rescinded California's EV rules.

The legislation also canceled penalties put in place by the Biden administration for automakers not meeting fuel efficiency standards.

"I don’t want the government to dictate the kind of cars we build," Duffy said on Friday. "I want the freedom of innovation, and I want consumer demands to drive the kinds of cars that are produced.

Duffy added, "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."

Vehicle sales in the U.S. went up by 2.4% despite steep tariffs on imported vehicles as the average new car price hit a record $50,326.

This came as American consumers bought more expensive SUVs and trucks while sellers offered fewer budget-friendly options, according to research firm Cox Automotive.

"Whatever effects those tariffs may have on various parts of the supply chain, they're not really getting down to the consumer," Greer said.

Reuters contributed to this report.