July 19, 2026 to July 25, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, 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. Also consider subscribing to our Automotive - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🏛️ This Week's Congressional Calendar
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Energy and Commerce Subcommittee Scheduled Markup: The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade is scheduled to hold a markup in Room 2123 of the Rayburn House Office Building on August 1, 2026, at 2:15 pm.

Federal Government News

White House Imposes 50% Tariff on Canadian Motor Vehicles

On July 20, 2026, President Trump issued a proclamation imposing a 50% ad valorem duty on certain Canadian products, including motor vehicles, effective August 19, 2026, under Section 338 of the Tariff Act of 1930. This action responds to Canada’s discriminatory tariff system targeting U.S. vehicle exports, which imposes a 25% tariff on non-USMCA-compliant vehicles and additional tariffs linked to non-originating content, alongside tariff-rate quotas incentivizing production in Canada. According to federal data, U.S. exports of motor vehicles to Canada fell 22% from April 2025 to March 2026, while imports from Mexico, Japan, Korea, and Germany increased. The proclamation authorizes changes to the Harmonized Tariff Schedule and directs U.S. Customs and Border Protection, Treasury, Commerce, and Trade Representative agencies to implement necessary rules.

Sources: www.whitehouse.gov, www.federalregister.gov

White House Establishes Aluminum Import Incentive Program

President Trump signed a proclamation on July 20, 2026, under Section 232 of the Trade Expansion Act, modifying U.S. aluminum import tariffs to encourage investment in domestic aluminum production. The Secretary of Commerce is authorized to approve onshoring plans from companies investing in new, expanded, or refurbished facilities. Approved firms may import primary aluminum at half the Section 232 tariff rate, matching anticipated annual output. Compliance will be monitored, with benefits rescinded for noncompliance. The program aims to address persistent gaps in domestic capacity for primary aluminum, which the Secretary identified as insufficient for strategic U.S. needs. The Secretary may adjust the tariff schedule and enforce compliance, including audits and penalties.

Sources: www.whitehouse.gov, www.whitehouse.gov, www.federalregister.gov

NHTSA Denies Petition for Tesla Door-Release Defect Investigation

On July 24, 2026, NHTSA formally denied a petition requesting investigation into alleged defects in the emergency mechanical door release design of the 2022 Tesla Model 3. The petitioner cited difficulty locating mechanical door handles during a post-collision power loss. NHTSA’s Office of Defect Investigations found only a single relevant consumer complaint in its database, covering the same vehicle. The agency determined the issue does not indicate a safety defect warranting additional investigation, noting that compliance with Federal Motor Vehicle Safety Standard 206 is not dictated by labeling or location requirements for mechanical door releases. Related concerns are deemed more suitable for rulemaking, which has been initiated.

Sources: www.federalregister.gov

FTC Comment Request on Automotive Fuel Rating Rule Extension

The Federal Trade Commission issued a notice July 23, 2026, seeking public comment until September 21, 2026, regarding the proposed three-year extension of information collection under the Automotive Fuel Ratings, Certification, and Posting Rule. The rule covers recordkeeping by refiners, producers, importers, distributors, and retailers, and annual labeling requirements for fuel dispensers. FTC estimates annual industry burden at 28,163 hours and annual labor and capital costs at $455,731 and $308,536, respectively. The rule is implemented under the Petroleum Marketing Practices Act and entails standard procedures for determining, certifying, and posting fuel ratings.

Sources: www.federalregister.gov

ITC Opens Investigation on Battery Anode Material Imports

The U.S. International Trade Commission published notice on July 24, 2026, that it has instituted an investigation into claims of patent infringement involving certain silicon-carbon anode materials used in battery cells. The complaint, submitted by Sila Nanotechnologies and Georgia Tech Research Corporation, alleges imported anode materials infringe U.S. Patent Nos. 11,515,528; 11,715,825; 11,374,215; and 11,942,624. Respondents named include Carbon ONE New Energy Group Co., Carbon One New Energy (Hangzhou) Co., and Zhejiang Lichen New Material Technology Co. The Commission is authorized to issue exclusion orders and cease-and-desist orders if violations are found.

Sources: www.federalregister.gov

Legislative Updates

American Manufacturing Renaissance Act Introduced

Bill: 9931. Proposed to develop and monitor a national manufacturing strategy and establish Manufacturing Renaissance Councils modeled on the Chips and Science Act’s technology hubs. Referred to House committees on Energy and Commerce, Education and Workforce, Financial Services, and Agriculture.

Sources: www.congress.gov

Prohibition on Catalytic Converter Trafficking

Bill: 9904. Aims to prohibit trafficking in catalytic converters by amending Title 18, United States Code. Referred to the House Committee on the Judiciary.

Sources: www.congress.gov

CAFE Standards Elimination Bill

Bill: 5092. Proposes to amend Title 49, United States Code, to eliminate corporate average fuel economy standards. Referred to the Senate Committee on Commerce, Science, and Transportation.

Sources: www.congress.gov

Advance Tire Technologies Bill

Bill: 5095. Requires the Secretary of Transportation to revise Federal motor vehicle safety standards to advance tire technologies. Referred to the Senate Committee on Commerce, Science, and Transportation.

Sources: www.congress.gov

Automobile Insurance Industry Reporting Requirement

Bill: 9916. Seeks to require the Director of the Federal Insurance Office to submit annual reports on the automobile insurance industry to the President and Congress. Referred to the House Committee on Financial Services.

Sources: www.congress.gov

What We're Reading This Week

• US Senate panel approves bill cracking down on the sale of Chinese vehicles: Senate advances bill targeting sales of Chinese vehicles in the U.S. market.
• U.S. auto industry races to purge Chinese connected-car hardware amid federal push: U.S. automakers accelerate removal of Chinese telematics components in response to federal action.
• As Musk pivots beyond cars, Tesla’s autos engine is under strain: Tesla faces capital challenges as CEO Elon Musk shifts focus toward AI and robotaxi development.
• Electrified cars drive Europe auto sales growth as Chinese brands gain ground: European automotive sales grow, propelled by electrified vehicles and rising Chinese brands.
• Ford and Geely strike deal for EV production at Spanish plant, newspaper reports: Ford and Geely reportedly reach agreement to manufacture EVs at Spanish facility.
• China's Geely to make electric SUVs at Ford Spain plant, jointly develop model for Europe: Geely and Ford plan joint development and production of electric SUVs for European markets.
• US agency rejects petition seeking Tesla door-release defect probe: Federal auto safety regulator denies request to investigate Tesla Model 3 emergency door release.
• Chinese EV maker Xpeng to recall 33,473 X9 vehicles: Xpeng announces recall of 33,473 X9 vehicles to address technical issue.
• Ford to recall more than 565,000 US vehicles over engine compartment fire risk: Ford issues recall for over 565,000 U.S. vehicles due to engine compartment fire hazard.

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