The Trump administration has taken steps to reverse federal policies promoting electric vehicles (EVs) and to support the internal combustion engine. This includes the repeal of tax credits for EVs and the reduction of penalties for automakers that do not meet fuel-efficiency standards. The Corporate Average Fuel Economy (CAFE) standards, which were originally established in the 1970s to enhance fuel efficiency and reduce reliance on foreign oil, are also being rolled back. Under the Biden administration, these standards were set to increase significantly, with targets of 65.1 miles per gallon for passenger cars and 45.2 for light trucks by 2031.

Despite the push for EVs, sales data indicates that electric vehicles comprise less than 2% of light-duty vehicles in the United States, according to the U.S. Energy Information Administration. A letter from numerous car dealerships to President Biden highlighted that EVs were not selling as quickly as they were being delivered, even with price reductions and government incentives. This suggests a disconnect between regulatory goals and consumer demand.

Independent journalist Robert Zubrin noted that EV ownership is concentrated among affluent demographics, particularly in states like California, where a significant percentage of EVs are registered. Major automotive manufacturers, such as Ford, have reported substantial financial losses in their EV divisions, raising questions about the sustainability of current EV strategies.

Critics of the stringent CAFE standards argue that they have inadvertently made it more challenging for manufacturers to produce smaller, more affordable vehicles, as larger vehicles are easier to align with these regulations. Supporters of the standards contend that without them, the U.S. risks falling behind in the global EV market, particularly against competitors like China. The recent rollback of these standards reflects a shift towards a market-oriented approach, suggesting that the future of EV adoption will depend more on consumer readiness and economic viability than on regulatory mandates.