US President Donald Trump has renewed his attack on electric vehicle policies, telling automobile workers in Michigan that consumers should be allowed to choose between electric and internal-combustion vehicles.
Trump said his administration had ended former President Joe Biden’s electric vehicle policy and fuel-efficiency standards, which he claimed would have damaged the American automobile industry.
“On day one, I ended Biden's insane electric vehicle mandate that would have crushed the US auto industry forever,” Trump said during a visit to the General Motors Milford Proving Ground on Monday.
Trump argued that electric vehicles required fewer workers to manufacture, raising concerns about employment in states such as Michigan that depend heavily on automobile production.
“And I don't want to say this in front of Mary, because she'll change your mind, but it takes far fewer people to build an electric car,” Trump said, referring to General Motors CEO Mary Barra.
“That doesn't mean they work better, but it takes less. And if you want an electric car, they make electric cars, too. But if you want to buy a combustion, if you want to buy anything you want, they make,” he added.
Trump also said he had terminated Biden-era Corporate Average Fuel Economy standards, commonly known as CAFE standards.
“I terminated Biden's disastrous CAFE Fuel Standards,” he said. “That was a short road to bankruptcy for every single car company in this country, and a total disaster that would have killed the internal combustion engine.”
“As long as I'm president, that will never happen,” Trump added.
The president coupled the policy shift with tariffs intended to encourage companies to manufacture vehicles inside the United States. He said imported automobiles and trucks faced a 25 per cent tariff, while vehicles built domestically did not.
Trump praised GM for expanding production. He said the company had increased truck and sport utility vehicle output by 20 per cent in 2026 and invested $9 billion over two years in bringing factories back to the United States.
“They're coming back home because, frankly, when they build here, there's no tariff,” Trump said.
He also promoted a tax deduction for interest paid on automobile loans, but said it would apply only when the vehicle was manufactured in the United States.
The previous Biden administration pursued tighter emissions and fuel-efficiency requirements as part of an effort to accelerate the transition to cleaner vehicles. The policies did not explicitly require every new vehicle to be electric, but were designed to increase the share of electric and other low-emission models sold in the country.
Changes in US electric vehicle policy carry implications beyond the American market. Global manufacturers and suppliers, including companies operating in India, make investment decisions around emissions rules, battery demand and access to the US market.
