August 02, 2026 to August 08, 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

PHMSA Finalizes Battery Transport Rule Expanding Materials of Trade Exception

The Pipeline and Hazardous Materials Safety Administration issued a final rule effective September 3, 2026, amending 49 CFR 173.6 to increase quantity limits for lithium batteries transported as materials of trade (MOT). Companies in construction, landscaping, and other trades may transport up to 30 kg per battery and 500 kg aggregate net weight per vehicle. Installed batteries in equipment are not capped. Batteries must meet UN Section 38.3 test criteria; prototype and low-production-run batteries are not covered. Outer packaging is not required if batteries are secured against shifting. Industry groups, including Battery Council International and Outdoor Power Equipment Institute, supported the revision, citing relief for logistical and regulatory burdens. The rule maintains mandatory hazard communication and packaging safety requirements.

Sources: www.federalregister.gov

Commerce Department Requests Public Comment on Proposed Section 232 Duties for Additional Derivative Articles

The Bureau of Industry and Security seeks input by August 27, 2026, on a proposal for Section 232 duties covering 14 new aluminum, steel, and copper derivative articles. Items include automotive-related parts such as hydraulic engine parts, self-propelled cranes, tanker and agricultural trailers, filled steel containers for specific chemicals, among others. Proposed tariffs are typically 25%, with exceptions. Interested parties are asked to comment on material composition, import volume, domestic production capability, and potential economic impacts. The proposal follows Presidential Proclamation 11021, which authorizes expansion of duties for products that may affect national security or undermine prior proclamations. Business confidential submissions must be accompanied by a public version.

Sources: www.federalregister.gov

White House Highlights Manufacturing Investments: Toyota to Increase U.S. Truck Production

The White House reported that July showed the strongest U.S. manufacturing expansion in four years, attributed to America First policies. Citing recent investments, Toyota announced a $3.6 billion commitment to boost truck production, resulting in 2,000 new jobs. Siemens allocated $165 million toward facility upgrades. Other automotive and industrial projects include Zerluma's $50 million aluminum plant and TSMC's multi-billion dollar chip manufacturing investment. The administration continues targeting supply chain revitalization and reshoring manufacturing activity to the U.S.

Sources: www.whitehouse.gov

International Trade Commission Institutes Expedited Engine Duty Review and Portable Battery Order Rescission

The ITC scheduled expedited five-year reviews under the Tariff Act for small vertical shaft engines imported from China, following an adequate response from domestic parties and an inadequate response from respondents. Briggs & Stratton, LLC, is cited as the primary domestic respondent. Comments may be submitted until September 23, 2026, with a staff report available September 16. Separately, the ITC rescinded a limited exclusion order (LEO) against certain portable battery jump starters after failure of the trademark holder, The NOCO Company, to submit required continued-use filings. The rescission proceeding is terminated.

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

PHMSA Adopts DOT Special Permit 14175, Authorizing Longer Requalification Intervals for Gas Cylinders

Effective September 3, 2026, the Pipeline and Hazardous Materials Safety Administration incorporated DOT special permit 14175 into the Hazardous Materials Regulations. This allows for a 10-year requalification interval using ultrasonic examination or hydrostatic testing with visual inspection for DOT 3A and 3AA gas cylinders in nonpoisonous flammable and non-flammable gas service. The change removes the need to renew individual special permits and reduces operational costs. The standard applies only to cylinders manufactured after December 31, 1945, used for specified gases and dried following hydrostatic testing. The rule maintains existing safety requirements and paperwork burden is decreased for affected companies.

Sources: www.federalregister.gov

Legislative Updates

A joint resolution disapproving EPA's California Small Off-Road Engine Standards

Bill 205 was read twice and referred to the Committee on Environment and Public Works. The resolution seeks congressional disapproval of an EPA rule relating to California's nonroad engine pollution standards.

Sources: www.congress.gov

Incentivizing Value Capture for Greener Transportation Act Introduced in House

Bill 10019 was referred to the House Committee on Transportation and Infrastructure. The legislation would incentivize value capture strategies to fund greener transportation projects.

Sources: www.congress.gov

Cleaner Transportation Access for All Act Receives Senate Consideration

Bill 5215 was read twice and referred to the Committee on Finance. The act proposes measures for expanding cleaner transportation access nationwide.

Sources: www.congress.gov

DRIVE Across America Act of 2026 in Senate Committee

Bill 5222 was read twice and referred to the Committee on Energy and Natural Resources. The DRIVE Act aims to promote nationwide automotive mobility and infrastructure.

Sources: www.congress.gov

CLUSTER Act Introduced, Focus on Transportation Infrastructure

Bill 10022 was referred to the House Committee on Transportation and Infrastructure. The CLUSTER Act targets networked transportation development and related infrastructure enhancements.

Sources: www.congress.gov

AV Emergency Response Coordination Act Addresses Autonomous Vehicle Incident Management

Bill 10033 was referred to committees on Transportation and Infrastructure and Energy and Commerce. The act seeks improved coordination following autonomous vehicle emergencies, routing to multiple committee jurisdictions.

Sources: www.congress.gov

What We're Reading This Week

• Pressured by Tesla, European regulators keep 'Full Self-Driving' safety data secret: European regulatory agencies have withheld public release of Full Self-Driving safety reports following input from Tesla.
• India raises windfall tax on diesel, petrol, jet fuel: India implemented increased windfall taxes on diesel, petrol, and aviation fuel this week.
• China's EV export boom is starting to show up in the gasoline market: Rising electric vehicle exports from China are impacting global gasoline market consumption patterns.
• China’s New Export Engine: Supplying the Factories of the World: China is supplying automotive and industrial components for global manufacturing, expanding its role in worldwide production chains.

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