WASHINGTON, D.C.: Industry leaders are pushing the Trump administration to clear regulatory obstacles slowing the rollout of self-driving vehicles, warning that inaction could put the U.S. behind China in autonomous technology.

This week, major automakers and tech groups, including the Alliance for Automotive Innovation, sent a letter to Transportation Secretary Sean Duffy urging swift action. The letter, seen by Reuters, called for a national performance-based framework and for the National Highway Traffic Safety Administration (NHTSA) to take full control over self-driving vehicle regulations.

"If the federal government fails to act to advance sensible AV policies, we will cede our leadership in this economically crucial sector to China," the letter said. "Multiple agencies and state regulatory regimes create inconsistent rules, risking safety gaps and eroding public trust."

The industry wants the U.S. Transportation Department (USDOT) to lift requirements that mandate human drivers for autonomous commercial vehicles and allow self-driving trucks to use cab-mounted warning beacons instead of manual warning devices. They also called for NHTSA to clarify that self-driving cars do not need traditional steering wheels or brake pedals and that passengers do not require driver's licenses to ride in them.

USDOT did not immediately comment on the requests.

The push for regulatory changes comes amid increased scrutiny of the self-driving sector. In October 2023, a General Motors Cruise vehicle seriously injured a pedestrian, triggering federal investigations. NHTSA has since launched probes into Cruise, Waymo (owned by Google), and Zoox (owned by Amazon). In November, Cruise admitted to submitting false information to NHTSA and agreed to a US$500,000 criminal fine.

In December, USDOT proposed streamlining the review process for self-driving vehicles lacking traditional controls, but efforts in Congress to ease deployment have stalled for years.

Tesla CEO Elon Musk, who is leading Trump's push to shrink federal agencies, told investors in January that Tesla plans to launch "autonomous ride-hailing for money" by June in Texas.

This week's letter is the latest attempt by the industry to spur regulatory action. Similar appeals were made under President Joe Biden, including calls from automakers and the Chamber of Commerce in December 2023 urging USDOT to accelerate self-driving adoption.