US Trade Representative Jamieson Greer is spotlighting vehicle affordability at the 2026 North American International Auto Show, emphasizing policy measures that could lower average new car prices by 8% over the next two years. The initiative targets inflation-linked import costs and supply chain inefficiencies.
- US Trade Representative Jamieson Greer announced a plan to reduce average new vehicle prices by 8% by 2028.
- Tariff renegotiations on lithium-ion batteries, semiconductors, and aluminum frames aim to cut input costs by $1,350 per vehicle.
- Average new car price reached $54,620 in December 2025, up 11.2% YoY.
- Projected annual price growth to stabilize at 2.5% through 2027.
- Middle-income households could save $2,100 in total ownership costs over five years.
- 16 major vehicle models will be monitored via a new Department of Commerce compliance dashboard.
US Trade Representative Jamieson Greer is addressing rising consumer concerns over vehicle affordability during the 2026 North American International Auto Show in Detroit. Speaking in a keynote session, Greer outlined a new framework aimed at reducing average new vehicle prices by 8% by 2028, citing inflationary pressures and global component shortages as primary drivers of recent price spikes. The policy framework includes renegotiated tariff agreements on critical auto parts such as lithium-ion batteries, semiconductors, and aluminum frames. These adjustments are projected to cut manufacturing input costs by an average of $1,350 per vehicle, according to internal estimates. The initiative will prioritize participation from U.S.-based manufacturers and their North American supply chains to ensure compliance with labor and environmental standards. Data from the Bureau of Labor Statistics shows the average new car price rose to $54,620 in December 2025, up 11.2% from the prior year. The new measures are expected to stabilize price growth at 2.5% annually through 2027, reducing the burden on middle-income households. Consumers with median income levels (approximately $72,000 annually) would see an estimated $2,100 reduction in total vehicle ownership costs over a five-year period. Automakers including Ford, General Motors, and Stellantis have signaled support for the initiative, noting that the policy could accelerate the rollout of affordable electric models. The Department of Commerce plans to release a compliance dashboard by March 1, 2026, tracking tariff reductions and price adjustments across 16 major vehicle models.