diff --git a/src/cargo/ops/cargo_new.rs b/src/cargo/ops/cargo_new.rs
index c7ba255803a7..8a0cf5f08f0c 100644
--- a/src/cargo/ops/cargo_new.rs
+++ b/src/cargo/ops/cargo_new.rs
@@ -10,8 +10,7 @@ use std::collections::BTreeMap;
 use std::fmt;
 use std::io::{BufRead, BufReader, ErrorKind};
 use std::path::{Path, PathBuf};
-use std::process::Command;
-use std::str::{from_utf8, FromStr};
+use std::str::FromStr;
 use toml_edit::easy as toml;
 
 #[derive(Clone, Copy, Debug, PartialEq)]
@@ -830,14 +829,12 @@ mod tests {
             paths::write(&path_of_source_file, default_file_content)?;
 
             // Format the newly created source file
-            match Command::new("rustfmt").arg(&path_of_source_file).output() {
-                Err(e) => log::warn!("failed to call rustfmt: {}", e),
-                Ok(output) => {
-                    if !output.status.success() {
-                        log::warn!("rustfmt failed: {:?}", from_utf8(&output.stdout));
-                    }
-                }
-            };
+            if let Err(e) = cargo_util::ProcessBuilder::new("rustfmt")
+                .arg(&path_of_source_file)
+                .exec_with_output()
+            {
+                log::warn!("failed to call rustfmt: {:#}", e);
+            }
         }
     }
 
diff --git a/tests/testsuite/init/formats_source/mod.rs b/tests/testsuite/init/formats_source/mod.rs
index 7d3616200483..b8454beea9e5 100644
--- a/tests/testsuite/init/formats_source/mod.rs
+++ b/tests/testsuite/init/formats_source/mod.rs
@@ -1,11 +1,19 @@
 use cargo_test_support::compare::assert_ui;
 use cargo_test_support::prelude::*;
-use cargo_test_support::Project;
+use cargo_test_support::{process, Project};
 
 use cargo_test_support::curr_dir;
 
-#[cargo_test(requires_rustfmt)]
+#[cargo_test]
 fn formats_source() {
+    // This cannot use `requires_rustfmt` because rustfmt is not available in
+    // the rust-lang/rust environment. Additionally, if running cargo without
+    // rustup (but with rustup installed), this test also fails due to HOME
+    // preventing the proxy from choosing a toolchain.
+    if let Err(e) = process("rustfmt").arg("-V").exec_with_output() {
+        eprintln!("skipping test, rustfmt not available:\n{e:?}");
+        return;
+    }
     let project = Project::from_template(curr_dir!().join("in"));
     let project_root = &project.root();