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.

Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas.

Dates: 2025-09-21 to 2025-09-27

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Canadian Federal GR News

Federal government provides new supports to auto workers and businesses affected by US tariffs

On September 26 in Windsor, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), detailed granular federal tariff-response measures for Canada's automotive sector in the face of ongoing trade disruptions and US tariffs. The government introduced a $450 million reskilling package aiming to train 50,000 workers through employer-based programs, short courses, and career counselling, with accompanying financial assistance options. Amendments to the Employment Insurance (EI) regime will provide 20 additional weeks (up to 65 total) of support for long-tenured workers, as well as extensions to April 2026 for previous temporary waivers on the one-week waiting period and suspension of separation-payment rules. An additional $382 million will launch new sectoral workforce alliances to help with employer and worker adjustment. Business measures include a $5 billion Strategic Response Fund to enable affected firms—especially automotive suppliers and OEMs—to diversify and maintain cash flow. Funding for the Regional Tariff Response Initiative expands from $450 million to $1 billion over three years, now offering more flexible and non-repayable supports for SMEs. Maximum loan amounts via the Business Development Bank of Canada are increased to $5 million, with expanded liquidity solutions for larger automotive manufacturers.

Sources: Announcements: www.canada.ca

Consultation opens on national Phase 1 risk management for PFAS chemicals

Environment and Climate Change Canada launched a public consultation on Phase 1 of proposed risk management for per- and polyfluoroalkyl substances (PFAS), excluding fluoropolymers. The government proposes listing this PFAS class on Part 2 of Schedule 1 to the Canadian Environmental Protection Act, which enables risk management but does not itself impose regulatory controls. This phase focuses on addressing PFAS not already regulated in firefighting foams and considers further phases for uses where alternatives may not exist, such as automotive componentry, medical devices, and transport. Stakeholders in sectors where PFAS are used—including automotive manufacturing and parts, engine components, and coatings—are invited to comment on proposed restrictions and alternatives until November 25, 2025. The government's risk management approach cites the persistence and bioaccumulation of PFAS, as well as documented risks to human health and environmental systems. Companies are expected to identify uses critical for safety or economic reasons, and the phased model could involve future requirements across consumer and industrial goods. Further regulatory changes to the Prohibition of Certain Toxic Substances Regulations, 2012, are also planned for PFAS subgroups.

Sources: Announcements: www.canada.ca

Minister Valdez to announce details of federal support package for auto sector and workers

On September 25, Minister Rechie Valdez scheduled an event in Windsor to further outline federal supports for Ontario’s automotive industry and labour force affected by ongoing US trade actions. Details include both direct and indirect financial assistance programs for auto workers, suppliers, and dealerships navigating cross-border barriers. The announcement confirms ongoing consultation with industry and labour, reinforced coordination with the Innovation, Science and Economic Development portfolio, and continued federal engagement with stakeholders at the regional level.

Sources: Announcements: www.canada.ca

Competition Bureau schedules summit on new economy competitiveness

The Competition Bureau will host Canada’s Competition Summit 2025 in Ottawa on October 1, featuring discussions by domestic and international experts on actionable market competition strategies in evolving sectors, including automotive manufacturing, retail, and associated supply chains. Notable participants include Minister Mélanie Joly and Carolyn Rogers of the Bank of Canada. The agenda covers strategies for enhancing market efficiency for businesses, consumers, and entrepreneurs, with particular relevance for vehicle import/exporters, parts manufacturers, and dealerships seeking to navigate policy shifts.

Sources: Announcements: www.canada.ca

StatsCan advance indicators: August wholesale and manufacturing sales slide in motor vehicles and parts

Advance data from Statistics Canada show that August wholesale trade sales decreased by 1.3% excluding petroleum and agriculture, led by lower sales in the motor vehicle and motor vehicle parts and accessories subsector. Similarly, manufacturing sales dropped 1.5% month-over-month, with the transportation equipment segment—encompassing automotive assembly and components—driving the overall decline. The sales contraction can affect order volumes, inventory management, and logistics planning within the sector.

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

StatsCan: Motor vehicle fuel sales and refined petroleum products update

2024 gross sales of gasoline in Canada increased marginally by 0.5% year-over-year to 43.8 billion litres, but remain below pre-pandemic 2019 levels. August 2025 production and inventory data for refined petroleum products, including automotive fuels and lubricants, are available upon request. Fuel sales trends inform automotive demand, product mix strategies, and operational planning for service providers and parts distributors.

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

NRC IRAP and Innovate BC invest in automotive-adjacent cleantech pilots

The National Research Council's Industrial Research Assistance Program (NRC IRAP) and Innovate BC announced $1.5 million for 11 small and medium-sized enterprises (SMEs) to pilot innovative clean technologies, which may include applications relevant to automotive manufacturing and aftermarket parts. The BC Fast Pilot program enables SMEs to demonstrate technologies in real-world conditions, including advanced materials and low-emission vehicle components potentially impacting supply ecosystems.

Sources: Announcements: www.canada.ca

StatsCan: Producer price and raw materials index movement in August

Industrial Product Prices rose 0.5% month-over-month and 4.0% year-over-year in August, while the Raw Materials Price Index slipped 0.6% but improved 3.2% annually. Metals and chemicals pricing can influence manufacturing costs for automotive components and engines, and may shape forward-pricing for vehicle parts supply contracts.

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

Households and the Environment Survey 2023 offers new data on vehicle ownership, sharing, and primary heating

Statistics Canada's 2023 Households and the Environment Survey includes updated data on households’ vehicle usage, participation in the sharing economy (including short-term vehicle rentals), and related environmental engagement. This dataset offers insights into changing mobility patterns, car-sharing adoption, and may inform medium-term outlooks for car rental, leasing, and service operations.

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

CBSA reports conviction and penalties for unreported goods in New York-plated vehicle

The Canada Border Services Agency (CBSA) convicted a US resident for unlawful possession, smuggling, and failure to report $114,000 in nicotine and unmarked tobacco products transported in a New York-plated vehicle via Cornwall. Charges led to cumulative fines and vehicle release penalties totalling over $77,600. CBSA maintains inter-agency cooperation with Ontario’s Ministry of Finance related to the smuggling of automotive goods and cross-border vehicles.

Sources: Announcements: www.canada.ca

US Federal GR News

NHTSA reviews Zoox application for temporary exemption of AV from multiple safety standards

NHTSA announced it has received Zoox, Inc.'s application for temporary exemption from several key Federal Motor Vehicle Safety Standards (FMVSS) for a passenger car equipped with an automated driving system (ADS), designed for operation without a human driver. The company seeks exemption from requirements related to windscreen wiping, lighting, rear visibility, braking, occupant protection, and glazing, among others. NHTSA is conducting an initial review and intends to open a future public comment period on the application’s merits after additional information is submitted by Zoox, in compliance with 49 CFR part 555 procedures. This potential exemption could affect the deployment timeline and regulatory treatment of ADS-equipped vehicles imported into North America.

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

USDOT publishes semiannual regulatory and deregulatory agenda, includes CAFE, AV, and self-insurance cost recovery initiatives

The US Department of Transportation (DOT) released its Semiannual Regulatory Agenda, outlining current and anticipated rulemakings across its agencies for the coming year. The 2025 agenda references the Administration’s Executive Orders on deregulation and economic analysis, identifies rules under review or development pertinent to the automotive sector—such as the “Fixing the CAFE Program” memo, actions on AV safety, and planned amendments concerning self-insurance cost recovery for large carriers. The agenda indicates ongoing and forthcoming rulemakings on repair station employee testing, pilot certification, risk reduction programs, and the continued review of rules tied to motor vehicle safety compliance and import/export procedures.

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

USITC affirms no Section 337 violation in aluminum steel and auto products patent case

The US International Trade Commission (USITC) issued a final determination in its Section 337 investigation concerning certain high-strength aluminum or aluminum alloy-coated steel and related automotive products. The Commission reviewed and affirmed the administrative law judge’s finding that the patent claims in question were invalid, relying on the prior art represented by the 2006 Volkswagen Passat. As a result, no violation was found, and the investigation—initiated on a complaint by ArcelorMittal in May 2024—is terminated as of September 18, 2025. This has implications for automotive importers and suppliers sourcing advanced steel and aluminum components from global markets.

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

EPA approves Delaware motor vehicle inspection and maintenance program for ozone attainment

The US Environmental Protection Agency (EPA) approved a State Implementation Plan revision submitted by Delaware to certify its Basic I/M (inspection and maintenance) program for vehicles in New Castle County, part of the Philadelphia nonattainment area for the 2015 8-hour ozone standard. This approval affirms that Delaware’s existing alternate low enhanced I/M program, codified at 7 DE Admin. Code 1131, meets the federal basic performance standard for vehicle emissions in a Moderate ozone nonattainment area. Automotive service providers and fleet operators with cross-border activities in this region should note no new regulatory changes are imposed beyond existing Delaware law at this stage.

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

Commerce releases final results: No antidumping duties for Korean cut-to-length steel plate, 2023-2024 review

The US Department of Commerce, International Trade Administration, published its final results for the 2023-2024 administrative review on certain cut-to-length carbon-quality steel plate products from the Republic of Korea. The review concluded that Dongkuk Steel Mill Co., Ltd. and Hyundai Steel Company did not make sales at less than fair value during the period, resulting in a zero percent weighted-average dumping margin for both companies. This determination means that shipments from these producers during the period will not be subject to antidumping duties, a factor relevant to automotive manufacturers and suppliers reliant on imported carbon steel plate.

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

Canadian Provincial GR News

Alberta extends good driver rate cap for auto insurance through 2026

The Alberta government will maintain a 7.5% cap on auto insurance rate increases for good drivers in 2026, extending the structure from previous years as it moves toward implementing a new care-first auto insurance model in 2027.

Sources: Provincial Announcement: www.alberta.ca

Nova Scotia introduces new Traffic Safety Act to modernize road safety rules

Nova Scotia's government introduced a new Traffic Safety Act intended to enable flexible, phased updates to traffic safety regulations. The act addresses distracted driving, vulnerable road users, emergency vehicles, and emerging vehicle technologies, and is set for implementation in early 2026.

Sources: Provincial Announcement: news.novascotia.ca

Saskatchewan updates translation and infrastructure information for road users

Saskatchewan announced updates to its online transportation infrastructure information and expanded professionally translated web content, including highway maintenance schedules and safety resources.

Sources: Provincial Announcement: www.saskatchewan.ca

Government Consultations

Consultation on amendments to VOC concentration limits for automotive refinishing products

Environment and Climate Change Canada has opened a consultation on possible amendments to the Volatile Organic Compound (VOC) Concentration Limits for Automotive Refinishing Products Regulations. Stakeholders are invited to comment on proposals that address innovation, administrative burden reduction, and new technology adoption until November 21, 2025.

Sources: Canadian Government Consultations: www.canada.ca

Consultation on chlorantraniliprole, proposed MRL for pesticides

Health Canada’s Pest Management Regulatory Agency has opened consultation on a proposed maximum residue limit (MRL) for chlorantraniliprole. Public feedback is invited by October 5, 2025.

Sources: Canadian Government Consultations: www.canada.ca

What We're Reading This Week

• Toyota adds electric vehicle battery work to Woodstock plant, eases tariff hit: Coverage of technological upgrades at a major Ontario auto plant amid tariff discussions.
• Tesla urges Trump not to repeal vehicle emissions rules, climate finding: Tesla formally requests that US emissions standards and climate rules be maintained.
• Dropping tariffs on Chinese electric vehicles would be a mistake, warns Kovrig: Debate surfaces in Canada over tariff policy on imported Chinese electric vehicles.
• The Extraordinary Rise of Electric Cars in Developing Countries: A review of EV adoption trends across emerging markets.
• Ottawa says Chinese EV tariff review is ‘informal,’ with no specific deadline: The federal government offers comments on the status of its Chinese EV tariff policy review.
• Driving regional and global impact: Feature on automotive innovation and its economic role in Canada.
• ‘Your car is in pieces’: B.C. woman speaks out after $33 oil change turns into $1,700 bill: Report highlights consumer concerns over vehicle service charges.
• Transportation corridor legislation would protect areas for future development: Summary of Nova Scotia's move to safeguard key transportation routes.
• The Globe and Mail: Ontario boosts vehicle battery supply chain with industry expansion: Analysis of investments in automotive battery manufacturing.
• Financial Post: Auto suppliers face shifting tariff landscape amid North America trade tensions: Review of strategies for Canadian automotive companies dealing with cross-border trade shifts.

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