August 23, 2026 to August 29, 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
• 📚 What We're Reading This Week

This Week's Congressional Calendar

• House Energy and Commerce Subcommittee to Mark Up Twelve Bills: The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade is scheduled to hold a markup session for twelve pieces of legislation on September 1, 2026, at 10:15 a.m. EDT in Rayburn 2125. The session will focus on measures affecting commerce, manufacturing, and trade policy.

Federal Government News

USITC Opens Investigation into Secondary Cylindrical Battery Imports

The U.S. International Trade Commission instituted Investigation No. 337-TA-1518 to determine whether specific secondary (rechargeable) cylindrical batteries, components, and products containing them infringe multiple patents asserted by LG Energy Solution Ltd. (Korea) and LG Energy Solution Arizona, Inc. (Arizona). Named parties include manufacturers and importers from China, Germany, and the U.S. automotive sector, among others. Complainants request limited exclusion and cease and desist orders. Respondents have 20 days to answer, with failure to respond risking default and an exclusion order. This proceeding could result in trade remedies affecting certain battery products, including vehicle components, if a violation is found.

Sources: www.federalregister.gov

CBP Finalizes Rule for Electronic Export Manifests on Rail Cargo

U.S. Customs and Border Protection published a final rule mandating the transmission of export manifest data for rail cargo electronically in the Automated Commercial Environment (ACE) for all trains departing the United States, effective October 26, 2026 with enforcement beginning October 26, 2027. The process replaces existing paper-based submissions and imposes new electronic requirements on outbound carriers, shippers, and intermediaries, covering transportation, cargo, and empty container data. The rule establishes timelines for initial and subsequent filings, requires an appropriate customs bond on file, and permits CBP referral, hold, and 'Do-Not-Load' instructions for high-risk shipments. CBP estimates the final rule will result in net compliance cost savings and improve coordination on export controls and inspection.

Sources: www.federalregister.gov

NHTSA Grants Michelin and Mercedes-Benz Petitions on Inconsequential Noncompliance

NHTSA granted three separate manufacturer petitions for inconsequential noncompliance. Michelin North America, Inc. received relief after its Uniroyal Laredo AT and HT tires were found missing required DOT and partial TIN labeling on one sidewall, and for certain Michelin TEX T195/65R22 spare tires with incorrect inflation pressure markings in one location; neither condition was deemed a safety risk for covered tires, provided labels were correct on the other side. Mercedes-Benz USA, LLC obtained relief for Model Year 2020-2021 GLE and GLS vehicles carrying tire placards overstating maximum cold tire pressure; the agency found the tires are designed for higher pressures, with no resulting safety risk. In all three actions, suppliers and dealers are reminded that the sale of noncompliant items remains prohibited after manufacturers have notified them of noncompliance.

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

White House Announces Tariff, Quota Action Against Canadian Auto and Goods Imports

A White House release stated President Trump is ending Canada’s “exploitative trade practices,” citing 25% tariffs and quotas on U.S. motor vehicles, bans on U.S. alcohol, and new protectionist measures. The U.S. notes a 22% drop in vehicle exports to Canada, an 81% drop in alcohol exports, and a claimed $50 billion trade deficit. The release highlights new Canadian tariffs totaling $27.6 billion on U.S. goods and refers to forthcoming shifts in U.S.-Canada trade policy, though formal measures were not disclosed in the statement.

Sources: www.whitehouse.gov

FMCSA Renews Emergency Exemptions Information Collection

The Federal Motor Carrier Safety Administration announced renewal of its Emergency Exemptions Information Collection under 49 CFR 390.25. This process governs how individuals, motor carriers, or states may request extension or modification of emergency exemptions, and outlines related reporting requirements. The annual burden is estimated at just under 1,440 hours, with 25 extension/modification requests expected per year. Public comments are invited on the necessity and practical utility of the information collection, with submissions due by October 26, 2026.

Sources: www.federalregister.gov

What We're Reading This Week

• Auto & Transport Roundup: Market Talk: Industry developments and highlights in global auto and transportation markets.
• Pint-Size Cars, With Enviable Smiles Per Gallon: Microcar designs attract interest among buyers seeking efficiency and urban maneuverability.
• China launches year-long auto quality drive, mandates defect recalls: Chinese regulators begin new campaign targeting auto quality and mandatory recalls.
• China flexes its auto-safety chops with huge recall of Tesla, other cars: Chinese authorities order major recalls affecting Tesla and other automakers over safety concerns.
• Diesel: Updates and features on diesel-related trends, regulation, and market positioning.
• High oil prices, subsidies and affordable models rev up European EV sales: Oil prices and subsidies spur EV adoption across European markets with expanded affordable offerings.
• Russian Sanctions Are Fueling a Canadian Car Theft Epidemic: Sanctions on Russia contribute to a surge in Canadian car thefts and illicit exports.

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