Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for car manufacturers, parts suppliers, car dealers, and others in the automotive industry. Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-06-08 to 2025-06-14

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📱 Public Officials' Social Media
• 📚 What We're Reading This Week

Canadian Federal GR News

Minister Joly to Discuss Canada's Auto Industry at 2025 Automotive Summit

The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, will participate in a fireside chat with automotive reporter Petrina Gentile at the 2025 Canada Automotive Summit on June 10 in Vaughan, Ontario. The session will be followed by a media scrum, with the agenda expected to cover current issues facing the Canadian automotive industry. Media were invited to confirm attendance with Innovation, Science and Economic Development Canada.

Sources: Announcements: www.canada.ca

Looking to elevate and streamline your approach to government relations with more data-driven solutions? Queen Street Analytics is here to help you achieve your goals faster, smarter, and more effectively. Reach out at contact@queenstreetanalytics.com to learn how we can support you.

New Motor Vehicle Registrations Rise in Q1 2025

In the first quarter of 2025, Canadians registered 426,872 new motor vehicles, representing a 2.9% increase over the same period in 2024, but a 3.8% decrease compared to the fourth quarter of 2024. The data points to ongoing fluctuations in vehicle demand and registration patterns, which may inform production and inventory planning for automotive companies.

Sources: Open Government Data Set: www.statcan.gc.ca

Monthly Survey of Manufacturing: Auto Sector Sees Sales Decline in April

April 2025 manufacturing sales in Canada fell by 2.8%, with lower sales of petroleum, coal products, motor vehicles, and primary metals being the primary contributors. Stripping out petroleum and coal products, total manufacturing sales were still down 1.8%. The automotive sector's sales performance is noted as a key factor in the overall decline, providing industry participants with updated data on market conditions affecting the supply chain and manufacturing output.

Sources: Open Government Data Set: www.statcan.gc.ca

Transport Canada Releases Multimodal Safety and Security Programs Oversight Indicators

Transport Canada's oversight delivery indicators for multimodal safety and security programs are now available for the third and fourth quarters of the 2024/2025 fiscal year. These indicators cover safety and security compliance across road, rail, and other transportation modes, offering stakeholders access to regulatory oversight performance metrics relevant to the vehicle and transportation industries.

Sources: Open Government Data Set: www.statcan.gc.ca

Endurance Specialty Insurance Ltd. Authorized to Offer Automobile Insurance in Canada

Effective April 28, 2025, Endurance Specialty Insurance Ltd. received authorization from the Office of the Superintendent of Financial Institutions to insure risks in Canada, including automobile insurance, as well as aircraft, boiler and machinery, and other classes. This regulatory approval expands the pool of insurers available to automotive businesses and consumers.

Sources: Gazette, Part I: www.gazette.gc.ca

US GR News

The recently passed "big beautiful bill" will have major repercussion for U.S. vehicle manufacturing, especially EVs.

White House Signs Law Blocking California Vehicle Emissions Waivers

President Trump signed three joint resolutions (H.J. Res. 87, 88, and 89) into law, disapproving Environmental Protection Agency rules that had allowed California to implement its own vehicle emissions standards—including the Advanced Clean Cars II, Advanced Clean Trucks, and Omnibus Low NOX programs. The measures prevent California from imposing electric vehicle mandates or regulating national fuel economy through carbon emissions standards. The resolutions cite the Clean Air Act's limitations on state waivers and prohibit the EPA from approving any future waivers that are substantially the same as those disapproved, effectively restricting California's ability to set vehicle emissions policy that could influence national standards.

Sources: White House Announcements: www.whitehouse.gov

US Doubles Section 232 Tariffs on Steel and Aluminum Imports

By presidential proclamation, the United States increased tariffs on imports of steel and aluminum articles, as well as their derivatives, from 25% to 50% ad valorem effective June 4, 2025. The action follows continued monitoring by the Secretary of Commerce and is intended to address ongoing national security concerns related to excess global capacity and low-priced imports. Imports from the United Kingdom remain at the previous rate, with potential adjustments tied to compliance with the U.S.-UK Economic Prosperity Deal. U.S. Customs and Border Protection has been directed to issue guidance on compliance and penalties for misreporting content. The new tariff rates apply to all relevant goods entered for consumption from June 4, 2025 onward.

Sources: U.S. Federal Announcements: www.federalregister.gov

Commerce Department Details Import Adjustment Offset Program for Auto Manufacturers

The International Trade Administration (ITA) published procedures for automobile manufacturers to apply for import adjustment offset amounts under Presidential Proclamation 10925, amending Proclamation 10908. The program provides eligible manufacturers assembling vehicles in the US between April 3, 2025, and April 30, 2027, with offset amounts calculated as a percentage of aggregate MSRP—3.75% for vehicles assembled through April 2026, and 2.5% for vehicles assembled until April 2027. These offsets can be used to reduce Section 232 tariffs on imported automobile parts. The ITA is seeking emergency approval to implement the program and invites public comment on the information collection requirements.

Sources: U.S. Federal Announcements: www.federalregister.gov

President Signs Measure Blocking California's Ban on New Gas-Powered Car Sales

On June 12, 2025, the President signed three congressional resolutions into law, disapproving EPA rules related to California's motor vehicle and engine pollution control standards. The resolutions specifically target EPA waivers that would have enabled California to implement bans on new sales of gas-powered vehicles and related emission standards, including provisions for heavy-duty trucks and zero-emission requirements for airport shuttles. The action removes the legal basis for California to enforce bans on internal combustion engine vehicles and mandates federal-level vehicle emission standards.

Sources: White House Announcements: www.whitehouse.gov

US DOJ Antitrust Division Publishes Notice on EV and Energy Storage Evaluation Consortium

The Department of Justice's Antitrust Division issued a notice regarding the Electrified Vehicle and Energy Storage Evaluation–II (EVESE II) consortium. Participants include BAE Systems Controls, Castrol Limited, Ford Motor Company, Honda Development & Manufacturing of America, and Komatsu America Corp. The venture is focused on advancing research into battery energy storage systems for both vehicular and non-vehicular uses, with work divided into cell, module, and application domains. The filing invokes provisions of the National Cooperative Research and Production Act of 1993, limiting antitrust liability under specified conditions.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Ontario Announces Hydrogen Energy Initiatives for Transportation and Industry

The Ontario government unveiled new measures to expand the province's hydrogen sector, including a pilot program for discounted electricity rates to hydrogen producers, potential regulatory oversight of hydrogen pipelines, and an expanded Hydrogen Innovation Fund. The initiatives are positioned to support hydrogen integration in transportation and heavy industry.

Sources: Provincial Announcement: news.ontario.ca

Public Officials' Social Media

Mélanie Joly posted about her discussions with the Automotive Parts Manufacturers Association Summit, citing defense investments and support for the auto sector and related jobs.

Sources: Social Media: x.com

MPs Andrew Scheer, Shannon Stubbs, Dan Mazier and Raquel Dancho posted that the federal ban on gas-powered vehicles would increase costs and limit consumer vehicle options.

Sources: Social Media: x.com, Social Media: x.com, Social Media: x.com, Social Media: x.com

What We're Reading This Week

• California Screaming as it Sues Trump Over Auto Emission Rules: California launches legal action against Trump administration over vehicle emission standards.
• Ottawa should scrap restrictive electric-vehicle regulations, GM Canada’s CEO says: GM Canada’s chief executive calls for changes to federal EV policy.
• Industry Minister Joly sees role for automakers in boosting Canada’s defence capacity: Coverage of Minister Joly's comments on automotive sector involvement in defense manufacturing.
• 2 Dire Warnings for Auto Investors to Heed: Analysis of market risks and investment signals for auto sector participants.
• From pickup trucks to armoured vehicles: Could Carney’s military plans save Canada’s auto industry?: Discussion of defense procurement and future opportunities for Canadian automakers.
• Trump tariffs could motivate Canadian auto thieves, insurance experts say: Insurance analysis of potential cross-border impacts of US tariffs.