July 26, 2026 to August 01, 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

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

Federal Government News

Procedures To Administer Import Adjustment Offset Amounts for Certain Imports of Automobile and Medium- and Heavy-Duty Vehicle Parts for Engine Manufacturers

The International Trade Administration announced the official procedures allowing domestic manufacturers of automobile and medium- and heavy-duty vehicle (MHDV) engines to apply for import adjustment offsets for qualifying parts, effective July 29, 2026. The process, established under Proclamation 10984 and prior related orders, sets the eligibility criteria based on the number of U.S.-originating core engine components used, with thresholds increasing after two years. Applicants must submit detailed forecasts, value calculations, prior year production and tariff liability estimates. Offsets can be carried forward indefinitely and are applied to reduce tariffs under relevant proclamations. Engine production operations not meeting component requirements are excluded. Oversight provisions include audit authority for Commerce and CBP, and penalties for noncompliance.

Sources: www.federalregister.gov

Certain Chassis and Subassemblies Thereof From China: Expedited Sunset Review of Countervailing Duty Order

The U.S. Department of Commerce completed the first expedited sunset review of the countervailing duty order on chassis and subassemblies from China. It determined that revoking the order would likely lead to continuation or recurrence of countervailable subsidies at a net rate of 44.32 percent ad valorem for all producers and exporters. The review consolidates input from domestic manufacturers, and substantive responses were not submitted by the Government of China or respondents. Parties subject to administrative protective order are reminded to comply with handling requirements.

Sources: www.federalregister.gov

White House Restricts Export and Import of Recoverable Critical Minerals and Materials

President Donald J. Trump delegated authority under the Defense Production Act to the Secretary of Commerce for imposing export restrictions on recoverable critical minerals and materials (CMMs) vital to national defense, including those sourced from industrial waste and recyclables such as lithium-ion batteries and rare earth magnets. The memorandum outlines that civilian markets cannot meet defense requirements without risk of supply disruption. Definitions cover black mass, end-of-life permanent magnets, and other waste streams, excluding copper scrap. The Secretary of Commerce is directed to issue implementing regulations. The determination is published in the Federal Register.

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

AV Framework Updates and Request for Comments on Interim Guidance

NHTSA issued a notice requesting public comment on interim guidance for commercial deployment exemptions of automated vehicles. The AV framework updates include a streamlined process for manufacturers to obtain operational authorizations, permitting dynamic adjustment of conditions as technology evolves. The agency began accepting AV exemption requests for domestic vehicles, expanded exemption pathways under section 30114(a), and continues FMVSS modernization rulemakings. NHTSA also refined Standing General Order 2021-01 crash reporting requirements, initiated rulemakings to clarify standards for ADS, and engaged in multi-stakeholder meetings for future technical regulation proposals. The comment period closes August 31, 2026.

Sources: www.federalregister.gov

Foreign-Trade Zone Notifications: Proposed Activities for Solar Electric Vehicles and Engine Parts

Notifications were filed for proposed FTZ production activities. Industrial Parts Depot, LLC in Carson, California seeks approval for diesel engine kits and related components using foreign-status materials subject to duty rates up to 4.5%. Aptera Motors Corp in Carlsbad proposes production of solar electric vehicles in Subzone 153P, with a duty rate of 2.5% and components such as lithium-ion cells and brake assemblies potentially requiring privileged foreign (PF) status due to trade actions. Public comment deadlines are September 8-9, 2026.

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

Legislative Updates

Carbon Dioxide Removal Leadership Act of 2026

Bill 9975, referred to the House Committee on Energy and Commerce, proposes federal leadership and support for carbon dioxide removal technologies. The committee will review regulatory frameworks and funding mechanisms.

Sources: www.congress.gov

Consumer Protection and Recovery Act

Bill 10003 addresses consumer protection and recovery authority, referred to both the House Committee on Energy and Commerce and Committee on the Judiciary. Legislative review will consider enforcement and recourse provisions.

Sources: www.congress.gov

A bill to clarify the use of certain existing grants under the Clean Air Act to purchase air sensors

Senate Bill 5145 was read twice and referred to the Committee on Environment and Public Works. The bill aims to clarify that Clean Air Act grants may fund air sensor acquisition.

Sources: www.congress.gov

A bill to require a study on chameleon carriers and advanced automation tool development

Senate Bill 5150 directs the Comptroller General to study chameleon carriers and mandates the Federal Motor Carrier Safety Administration to develop and test an automation tool for detecting registration anomalies. Referred to the Committee on Commerce, Science, and Transportation.

Sources: www.congress.gov

Recycling Infrastructure and Data Accountability Act

Bill 9987 was referred to the House Committee on Energy and Commerce, focusing on recycling infrastructure and improved data accountability for materials management.

Sources: www.congress.gov

A bill to require the Secretary of Energy to remove carbon dioxide directly from ambient air or seawater

Senate Bill 5170 mandates the Secretary of Energy to implement direct carbon dioxide removal from ambient air or seawater. The bill awaits further review by the Committee on Energy and Natural Resources.

Sources: www.congress.gov

What We're Reading This Week

• US auto safety regulator probes 1.2 million Tesla vehicles over suspension failure risks: NHTSA investigates potential suspension defects in Tesla vehicles.
• The German Auto Industry, a Pillar of the National Psyche, Is Trembling: Coverage of challenges facing Germany's automakers and national industries.
• Why Americans are leasing fewer cars: Consumers in the U.S. decrease participation in car leasing agreements.
• After Watching Luxury Cars Drag Race, Trump Blames High Costs on Biden: President Trump addresses auto pricing and tariffs in Michigan speech.
• Opinion | Our Legislation Is Against China, Not Mercedes Benz: Commentary on legislative focus targeting China over automaker interests.
• India’s capital part of aggressive electric vehicle targets in bid to curb air pollution: With new mandates, Delhi pursues expanded EV adoption to reduce pollution.
• Carmakers Go Back to the ’80s With Turbo Engines: Manufacturers are reintroducing turbo engines in modern cars and trucks.
• As drivers get sticker shock, big oil gets a windfall: Oil companies report strong profits amid surging fuel prices.

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