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: 2025-06-22 to 2025-06-28

📋 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

Canada Implements Tariff Rate Quotas for Steel Mill Products from Non-FTA Partners

On June 27, 2025, the Department of Finance announced the implementation of new tariff rate quotas (TRQs) for steel mill products imported into Canada from non-free trade agreement (FTA) partners. The quotas are set at 2.6 million tonnes, with a 50% surtax imposed on imports above 2024 levels from non-FTA sources. This measure, effective immediately, is designed to address pressure on Canadian steel markets caused by steel diverted from the US due to recent American tariffs and by global overcapacity. The surtax will be additive to any existing surcharges or anti-dumping and countervailing duties, and forthcoming country-of-origin tariffs based on "melt and pour". The policy will be reviewed after 30 days in light of market developments and is supported by a new industry-government task force that has already commenced work. The announcement follows public consultations conducted earlier this spring on protection options for the steel industry; the government described the measure as temporary and subject to ongoing review, especially as discussions with the US government continue.

Sources: Announcements: www.canada.ca

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Royal Assent of Bill C-5: Project Consultation and Regulatory Review Timelines Formalized

Bill C-5, which enacts the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, received Royal Assent on June 26, 2025. Under the Building Canada Act, the federal government will initiate consultations with provinces, territories, and Indigenous rights-holders to define an initial list of national interest projects. Selection criteria include contributions to Canada's autonomy, resilience, economic benefit, feasibility, Indigenous interests, and alignment with clean growth policies. The new process mandates that nation-building projects in the Schedule undergo federal regulatory review within two years, with the review scope aimed at implementation measures rather than a yes/no approval.

CITT Initiates Injury Inquiry into Carbon or Alloy Steel Wire Imports

On June 19, 2025, the Canadian International Trade Tribunal (CITT) determined there is reasonable indication that dumping of carbon or alloy steel wire in nominal sizes up to and including 24.13 mm, originating from China, Chinese Taipei (Taiwan), India, Italy, Malaysia, Portugal, Spain, Thailand, Türkiye, and Vietnam, has caused injury to the domestic industry. The goods in question include various coatings, and exclusions are available in the official determination. The Tribunal's inquiry proceeds under the Special Import Measures Act, opening the path for potential anti-dumping measures following a full investigation.

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

Statistics Canada: Primary Energy Output Up, Manufacturing and GDP Down

Statistics Canada reported on June 27, 2025, that production of primary energy rose by 3.5% year-over-year in April, led primarily by refined petroleum product output (up 6.6%). Despite this, the real gross domestic product edged down 0.1% in April, with manufacturing and wholesale trade showing the most significant declines. An advance estimate for May points to a 1.3% decrease in total manufacturing sales, notably in transportation equipment and petroleum and coal subsectors. These results suggest uneven conditions for energy producers and automotive and parts manufacturers.

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

New Data: Environmental and Clean Technology Business R&D Expenditures

Statistics Canada released data on June 27, 2025, covering business expenditures and activities for research and development (R&D) in environmental protection and clean technology products during 2020 and 2021. The datasets are now available for industry review and sectoral analysis.

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

US Federal GR News

US Commerce: Final Countervailing and Antidumping Duties on Low-Speed Personal Transportation Vehicles from China

On June 23, 2025, the US Department of Commerce finalized affirmative findings in its countervailing duty (CVD) and antidumping (AD) investigations into low-speed personal transportation vehicles (LSPTVs), including certain golf cars and related vehicles, imported from China. The CVD investigation found that Chinese LSPTVs benefited from countervailable subsidies at rates of 31.45% to 44.38% for examined respondents, with all others at 41.14%. For non-cooperating entities, the rate set is 679.44%. The parallel AD finding assessed dumping margins of 119% for Guangdong Lvtong and 312% for Xiamen Dalle, with a China-wide entity rate of 478%. Suspension of liquidation and cash deposit requirements will be in effect pending the ITC's injury determination. The scope covers all finished and unfinished low-speed vehicles and certain subassemblies, but excludes ATV, some utility vehicles, go-karts, and mobility aids. The Department has imposed new certification requirements for entry of components to prevent circumvention through kits or subassemblies.

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

EPA Delegates Performance Standards and Hazardous Air Pollutant Enforcement to Louisiana

The US Environmental Protection Agency published a proposed rule on June 23, 2025, to update the delegation of New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAPs) to the Louisiana Department of Environmental Quality. The update applies to revised standards promulgated through July 1, 2021, and transfers primary enforcement authority to the state for most federally regulated sources, with exceptions for certain radioactive and other specified sources. Louisiana is now responsible for most stationary source emission standards under the Clean Air Act, although the EPA retains oversight, including the right to enforce, review interpretations, or withdraw approval if state implementation is insufficient. Provisions do not extend to sources located in Indian country.

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

US Commerce: Scope Ruling Applications Filed for Automotive Brake Hose Fittings and Wheels from China

The International Trade Administration, on June 25, 2025, provided public notice of scope ruling applications received in May related to antidumping and countervailing duty orders. Among the applications, AGS Company Automotive Solutions seeks clarification on the inclusion of specific 12L14 steel automotive brake hose fittings originating in China under the scope of forged steel fittings orders. Vision Wheel, Inc. requests a scope ruling on steel wheels imported from China. These applications initiate formal scope inquiry processes under US trade law, which can affect supply chains for auto parts and components.

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

NHTSA Seeks Feedback on Qualitative Agency Service Delivery, Including for Vehicle Safety Initiatives

On June 26, 2025, the National Highway Traffic Safety Administration announced its intent to reinstate a prior information collection, seeking qualitative feedback from customers and stakeholders on agency service delivery. The program encompasses voluntary surveys, focus groups, and usability testing to gather insights on service efficiency, timeliness, and user experience, but does not involve the collection of personally identifiable information. Public comments are due by August 25, 2025.

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

Canadian Provincial GR News

Ontario Auto Tooling Manufacturer Fined for Workplace Injury Incident

On June 23, 2025, Ontario's Labour, Immigration, Training and Skills Development reported that Aarkel Tool and Die Inc., an automotive tooling manufacturer in Wallaceburg, was fined $75,000 after a worker was critically injured in a 2022 workplace accident involving a lower carrier assembly.

Sources: Provincial Announcement: news.ontario.ca

Saskatchewan Government Insurance (SGI) Faces Rising Vehicle Repair Costs Amid Annual Results

SGI's 2024-25 annual report, released on June 23, 2025, cites economic pressure from increased vehicle repair costs, inflation, and extreme weather, though the Auto Fund maintains some of Canada's lowest average auto insurance rates. SGI CANADA reported net income of $43.2 million and gross premium growth of 3.8 percent.

Sources: Provincial Announcement: www.saskatchewan.ca

Public Officials' Social Media

On June 27, 2025, MP Dan Mazier posted on Twitter, calling the federal EV mandate a "carbon tax" and alleging it will increase vehicle prices and reduce jobs, while urging rejection of the gas-powered vehicle ban.

Sources: Social Media: x.com

MP Leslyn Lewis, on June 27, 2025, described the EV mandate as a "carbon tax in disguise," claiming it reduces consumer choice and could increase new car costs by up to $20,000.

Sources: Social Media: x.com

On June 27, 2025, MP Melissa Lantsman asserted that federal policy reversals arrive only after industry disruption, suggesting delayed action for automotive dealers and manufacturers.

Sources: Social Media: x.com

MP Evan Solomon on June 26, 2025, referenced Project Arrow and the development of Canada's first zero-emission concept vehicle amid challenges posed by tariffs and global market uncertainties.

Sources: Social Media: x.com

What We're Reading This Week

• The Globe and Mail: Renting out your car or backyard to generate extra cash? What to know about insurance: Brief overview on insurance considerations for vehicle sharing or rental platforms.
• The Globe and Mail: National Expansion of the Innovative Industry-led Electrified Vehicle (EV) Battery Recovery Program: Coverage of a nationally expanded industry initiative for EV battery recycling.
• National Post: Electric vehicle mandate risks being next carbon tax without 'adjustments,' EV industry warns: Industry voices concerns regarding the EV mandate and regulatory risks.
• The Globe and Mail: Ocean Power Technologies Awarded Patent for System and Method for Vehicle Charging: Announcement of new vehicle charging technology patent.
• The Globe and Mail: Opinion – What we can learn from Quebec’s failed EV subsidies: Editorial on policy outcomes of provincial EV subsidy programs.
• The Globe and Mail: China's auto industry inflated sales for years by exporting new cars as ‘used’: Report on Chinese automotive export practices impacting trade statistics.
• Financial Post: Ford Escalates Battery Job Warnings as Congress Mulls EV Cuts: Ford issues further statements on battery-related job risks tied to US policy.
• The Globe and Mail: Opinion | Ottawa’s electric vehicle mandate threatens the car industry in Canada: Opinion piece analyzing effects of the federal EV mandate on Canadian manufacturing.