September 06, 2026 to September 12, 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

• Senate Environment and Public Works Committee Considers Air Quality and Vehicle Engine Bills: The Senate Environment and Public Works Committee will meet September 16, 2026, to consider S.5045 (modification of Clean Air Act for prescribed fires), S.3135 (EPA to allow manufacturers to suspend engine derate/shutdown in prolonged cold weather), and S.5249 (aligning uranium enrichment facility licensing).
• House Rules Committee Reviews Congressional Disapproval of EPA State Pollution Rules Impacting Vessels and Other Legislation: The House Rules Committee schedules a meeting for September 14, 2026, addressing disapproval resolutions concerning California’s engine pollution control standards for vessels, along with other legislative business.

Federal Government News

White House Modifies and Expands Tariffs and Import Bans on Canadian Automotive and Related Products

On September 8, 2026, President Trump issued a series of proclamations adjusting additional tariffs and import restrictions imposed on Canadian goods under Section 338 of the Tariff Act of 1930. The administration cited Canada's ongoing discriminatory motor vehicle tariff regime as the impetus for continued U.S. action. Key measures include modifying the product scope of a 50% ad valorem duty on certain Canadian imports first imposed July 20, 2026, revoking a temporary duty suspension that lapsed on August 22, 2026, and establishing an outright import ban—effective September 29, 2026—on specific Canadian goods, including select automotive components and related items. Some products were removed from the tariff list (such as rock salt and cement), while others (including all-terrain vehicles and further dairy goods) were added. U.S. Customs and Border Protection and other agencies are instructed to implement, administer, and, if needed, adjust the Harmonized Tariff Schedule provisions. The White House further announced the removal of Canadian-origin products from federal procurement schedules as part of its reciprocal trade enforcement approach. These actions supplement previously implemented Section 232 tariffs. The import restrictions apply regardless of USMCA origin status.

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

IRS Publishes Final Rule for Car Loan Interest Deduction and New Reporting Requirements

The Internal Revenue Service announced final regulations implementing the federal income tax deduction for up to $10,000 in qualified passenger vehicle loan interest, effective for tax years beginning after December 31, 2024, and before January 1, 2029. The rules derive from the One, Big, Beautiful Bill Act and set new requirements for both taxpayers and lenders. Financial institutions and auto dealers must file information returns (Form 1098-VLI) when they receive $600 or more in interest from an individual on a new car loan secured by a first lien on a vehicle with final assembly in the U.S. Detailed definitions address the scope of covered vehicles, refinancing, and customary items included in financed transactions. Penalties for noncompliance are outlined. The regulations clarify eligibility, reporting obligations, and modifications from the proposed rule, following a comment period where several industry concerns about recordkeeping and system upgrades were raised.

Sources: www.federalregister.gov

NHTSA Requests Comment on GM Petition Regarding Motor Vehicle Lighting Compliance

The National Highway Traffic Safety Administration announced receipt of a petition from General Motors, LLC seeking a determination of inconsequential noncompliance for approximately 10,241 MY 2024 Cadillac XT4, Chevrolet Colorado, and GMC Canyon vehicles. The issue concerns certain lighting functions not meeting specific activation requirements under FMVSS No. 108 when the master lighting control is manually set to OFF under dark conditions and the transmission is not in PARK. GM argues the noncompliance does not negatively affect safety and has provided supporting arguments, referencing past NHTSA decisions on similar technical matters. Comments on the petition are due by October 13, 2026. NHTSA has stated that this notice does not represent a final agency decision.

Sources: www.federalregister.gov

PHMSA Issues Final Preemption Determination on State Tort Claims for Transportation of Gasoline

The Pipeline and Hazardous Materials Safety Administration issued a final ruling preempting state common law tort claims involving the transportation of gasoline by cargo tank motor vehicles, after an application by Exxon Mobil Corporation citing New Jersey litigation on worker health risks related to benzene exposure. PHMSA concluded that the federal Hazardous Material Transportation Act (HMTA) preempts state law claims when they impose additional or different requirements regarding marking, loading, employee training, or classification that are not substantively the same as federal regulations. The determination references recent Supreme Court precedent (Monsanto v. Durnell) and prior agency guidance. The decision is open to petitions for reconsideration and judicial review.

Sources: www.federalregister.gov

NHTSA Requests Comment on Information Collection for Uniform Tire Quality Grading Standard

NHTSA published a notice seeking comments on the reinstatement, with modification, of information collection requirements regarding the Uniform Tire Quality Grading Standards (UTQGS) under 49 CFR 575.104. Tire manufacturers and brand owners must grade passenger car tires for treadwear, traction, and temperature resistance, label tires accordingly, and furnish data at the point of sale. NHTSA estimates the burden at 69,888 hours annually across 45 manufacturers, with an associated annual non-labor cost of $35.1 million for compliance activities such as testing, labeling, and publishing consumer disclosures. Electronic submissions are permitted. Comments are due by October 13, 2026.

Sources: www.federalregister.gov

What We're Reading This Week

• Trump says he would be OK with China building cars in US: Former President Trump states he would accept Chinese firms building cars in the United States.
• Italian lobby group calls for 80% EU tariff on Chinese cars and parts: Italian industry group urges the EU to impose steep tariffs on Chinese automotive imports.
• BYD targets more than 2.5 million vehicle exports in 2027, brokerages say: BYD sets an export goal of over 2.5 million vehicles for 2027, according to analysts.
• Thailand to increase tax on EV imports, official says: Thailand announces plans to raise import taxes on electric vehicles, affecting foreign automakers.
• Dacia to bring popular EV Spring back home to Europe from China: Dacia plans to shift production of its Spring EV from China to European facilities.
• Audi introduces new compact EV in bid to boost European sales: Audi unveils a new compact electric model targeting increased sales in the European market.
• NEWSLETTER: VW goes for broke: VW adopts aggressive new strategies amid competitive pressures in the global auto industry.
• Trump administration blasts Ford's business deals with Chinese firms: The Trump administration criticizes Ford for engaging in business partnerships with Chinese companies.
• Porsche completes Bugatti Rimac exit, lifts 2026 cash flow outlook: Porsche finalizes its exit from Bugatti Rimac and raises its 2026 cash flow outlook.
• Howmet CEO "fine" with GE Aerospace deal, working to meet demand for engine parts: Howmet CEO supports the GE Aerospace deal and addresses current high demand for engine components.

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