After new car prices hit record high, Trump admin says it’s working to lower costs

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Average new car transaction prices reached a record $50,326 in December, driven by consumer preference for pricier trucks and SUVs

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The Trump administration’s leading auto policy officials have championed federal efforts to reduce car prices by dismantling vehicle emissions regulations, as affordability remains a significant concern for American consumers.

Transportation Secretary Sean Duffy, Environmental Protection Agency head Lee Zeldin, and U.S. Trade Representative Jamieson Greer concluded a two-day Midwestern tour at the annual Detroit Auto Show. Their itinerary included visits to a Ford truck factory and a Stellantis Jeep plant in Ohio on Friday.

The administration has aggressively rolled back electric vehicle rules from former President Joe Biden's administration. Mr Duffy stated that these changes "will bring car prices down and allow car companies to offer products that Americans want to buy." He further 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."

President Donald Trump is grappling with economic headwinds a year after taking office and ahead of November's midterm elections, having campaigned on quickly fixing higher prices for American consumers. Average new car transaction prices reached a record $50,326 in December, driven by consumer preference for pricier trucks and SUVs, according to research firm Cox Automotive, while automakers offer fewer entry-level vehicles.

Last year, Trump signed legislation eliminating a $7,500 EV tax credit, rescinding California's EV rules, and cancelling penalties for automakers not meeting fuel efficiency requirements. Mr Zeldin asserted that the government "should not be forcing, requiring, mandating that the market go in a direction other than what the American consumer is demanding."

Automakers also face steep tariffs imposed by Trump on imported vehicles and parts. Despite these policy shifts and new tariffs, new U.S. vehicle sales rose 2.4% in 2025 to 16.2 million vehicles.

Democrats argue that auto tariffs and efforts to eliminate EV incentives will harm consumers. However, Greer contended that car prices are trending down and "whatever effects those tariffs may have on various parts of the supply chain, they're not really getting down to the consumer."

Kathy Harris, director of clean vehicles at the environmental activist group NRDC, criticised the administration's auto policies. She warned, "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."

In December, the U.S. Department of Transportation proposed rolling back Biden-era fuel efficiency standards that had encouraged auto companies to build more EVs. The EPA is also expected to finalise a rule in the coming weeks eliminating vehicle tailpipe emissions requirements. The USDOT estimates its proposal would reduce average up-front vehicle costs by $930, but increase fuel consumption by as much as 100 billion gallons through 2050, and cost Americans up to another $185 billion for fuel

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