President Donald Trump announced on Wednesday that he would loosen regulations to permit the production of smaller, more compact cars in the U.S.

The president said in the Oval Office that he had directed Transportation Secretary Sean Duffy to remove barriers to the manufacturing and marketing of these cars in the United States. Trump also announced that the government would be rolling back Biden-era fuel efficiency standards that the administration said "effectively resulted in an electric vehicle (EV) mandate."

Newsweek has contacted the Department of Transportation for comment via email outside regular hours.

Why It Matters

The administration believes the compact cars would prove more fuel-efficient and affordable than those already available on the market, and Trump said manufactu

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