August 16, 2026 to August 22, 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

NHTSA Proposes Removal of Dynamic Rollover Test in NCAP and Updates 10-Year Roadmap

The National Highway Traffic Safety Administration released a request for comment proposing to remove the Dynamic Rollover Resistance Test (Fishhook maneuver) and Side Air Bag Out-of-Position (SAB-OOP) testing protocols from the New Car Assessment Program (NCAP). These changes are based on findings that electronic stability control systems required by FMVSS No. 126 have rendered the dynamic rollover test redundant. The agency also outlined updates to the NCAP's 10-year roadmap, detailing planned upgrades in crashworthiness, crash avoidance, and vulnerable road user safety evaluations through 2035. Notably, implementation timelines for some advanced crash test dummies and rating system updates have been adjusted due to ongoing research and resource constraints. The agency seeks stakeholder comments by October 16, 2026, for consideration in program modernization.

Sources: www.federalregister.gov

Amended Submission Procedures for Importers of Automobiles Qualifying Under USMCA Tariff Rules

The U.S. Department of Commerce amended documentation requirements for importers of automobiles seeking preferential tariff treatment under the USMCA, aligning automobile procedures with those for medium- and heavy-duty vehicles as established by Proclamation 10984. Importers are required to submit detailed documentation to verify U.S. content and determine the portion of the 25% tariff imposed since March 2025 that applies to non-U.S. content. For vehicles imported after December 1, 2026, new submissions must be completed by September 30, 2026, with determinations valid for one year. The new rules include mandatory disclosure of changes in sourcing or production, and misreporting can result in retroactive tariff application.

Sources: www.federalregister.gov

Temporary Suspension of Additional Duties on Canadian Motor Vehicles and Parts

President Trump issued a proclamation on August 18, 2026, suspending for three days additional duties on Canadian imports of motor vehicles, alcoholic beverages, and dairy, which had been scheduled under prior presidential proclamations to address trade actions deemed discriminatory toward U.S. exports. The temporary suspension—effective August 19 through 22—was ordered following Canadian commitments in negotiations to address the relevant issues. The proclamation authorizes agency actions to adjust the Harmonized Tariff Schedule and process refunds as warranted.

Sources: www.whitehouse.gov

Continuation of Antidumping and Countervailing Duty Orders on Certain Large Vertical Shaft Engines from China

The Department of Commerce and the International Trade Commission determined that removing antidumping and countervailing duty orders on spark-ignited, non-road vertical shaft engines (225cc–999cc) and related parts from China would likely result in renewed dumping and material injury to U.S. industries. As a result, duties will continue for subject engines, which are predominantly used in outdoor power equipment such as riding lawn mowers. The effective date of continuation is August 11, 2026, with U.S. Customs and Border Protection directed to maintain current cash deposit rates.

Sources: www.federalregister.gov

Extension of Deadline for Determining Adequacy of Hydraulic Cylinder Duty Petitions

The U.S. Department of Commerce extended the review period by 20 days to assess the adequacy of antidumping and countervailing duty petitions concerning certain linear hydraulic cylinders and parts from Canada, China, India, Korea, and Mexico. The extension allows Commerce additional time to poll the industry and analyze whether statutory support thresholds are met before initiating a formal investigation. The determination date is now set for September 8, 2026.

Sources: www.federalregister.gov

Legislative Updates

STOP Improper Licensing Act

H.R. 10123, the STOP Improper Licensing Act, has been referred to the House Committee on Transportation and Infrastructure. The bill addresses licensing procedures for transportation operators.

Sources: www.congress.gov

Lifeline for First Responders Act

H.R. 10116, known as the Lifeline for First Responders Act, was introduced and referred to the House Committee on Transportation and Infrastructure. The legislation concerns transportation and public works support for emergency personnel.

Sources: www.congress.gov

What We're Reading This Week

• US highway agency expands probe into GM pickups, SUVs over engine failures: NHTSA has broadened its investigation into engine failures affecting GM pickups and SUVs after new complaints.
• Explainer: What we know about the door handles that triggered China’s record auto recall: A review of how faulty door handles led to China's largest automotive recall involving millions of vehicles.
• EXCLUSIVE: Chery's robot affiliate AiMOGA eyes IPO, targets overseas market: Chery's AI robotics unit AiMOGA is planning an IPO and seeks growth in international automotive markets.
• German state politician calls for EU tariffs on Chinese hybrid cars, letter shows: A German official urged the EU to impose tariffs on Chinese hybrid vehicles, citing competitive concerns.
• Tesla and others begin record vehicle recall in China: Millions of vehicles, including Tesla models, are recalled in China for software updates addressing safety issues.
• NEWSLETTER: US automakers try to avoid Mexico-Canada trade pothole: US automakers adjust operations to navigate evolving USMCA rules affecting cross-border production.

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