Trump's EV Rollback: Lower Car Prices or Higher Costs?

The Trump administration is rolling back electric vehicle regulations to reduce car prices. Officials argue it enables consumer choice, but critics say it benefits oil industries and may increase fuel costs for Americans. The administration is also eliminating EV tax credits and fuel efficiency penalties.

The Trump administration is making a decisive push to scale back electric vehicle (EV) regulations, aiming to lower car prices, according to policy officials at the Detroit Auto Show. Transportation Secretary Sean Duffy emphasized that the aim is to provide market-driven choices for consumers rather than mandating EV purchases.

Record-high transaction prices for new cars, driven by demand for SUVs and pickups, have put pressure on policymakers to ease the financial burden on consumers. Despite these changes, the administration faces criticism for policies that might ostensibly boost oil industry profits while imposing higher fuel costs on American drivers.

Under the rollback, the government has removed a $7,500 EV tax credit and eased emissions penalties. The Environmental Protection Agency is also set to no longer require stringent vehicle tailpipe emissions standards. While new U.S. vehicle sales rose slightly in 2025, Democrats argue the tariffs and reduced EV incentives could ultimately harm consumers.