September 27, 2026 to October 03, 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
• 📚 What We're Reading This Week

Federal Government News

NHTSA Finalizes Major Reset of CAFE Standards for Model Years 2022–2031

The National Highway Traffic Safety Administration finalized substantial amendments to Corporate Average Fuel Economy (CAFE) standards for light-duty vehicles covering model years 2022 through 2031. The new rule resets passenger car and light truck standards, recalibrates vehicle classification criteria effective MY 2030, and phases out inter-manufacturer credit trading for credits earned from MY 2028 onward. The revised approach excludes electric vehicles and most compliance credits from standard-setting analysis, focusing on technological feasibility and economic practicability of gasoline and diesel vehicles. Manufacturers are now required to meet adjusted incremental annual increases in CAFE performance, while new criteria for classifying vehicles as non-passenger will shift a significant share of crossovers and SUVs into the passenger car fleet starting MY 2030. Legal and administrative changes, such as elimination of civil penalties for shortfalls and streamlined reporting processes, were also codified with this rule.

Sources: www.federalregister.gov

EPA Issues Final Supplemental Environmental Impact Statement for SAFE Vehicles Rule III

The Environmental Protection Agency published the Final Supplemental Environmental Impact Statement (SEIS) for the Safer Affordable Fuel-Efficient Vehicles Rule III, which pertains to model years 2022 to 2031 passenger cars and light trucks. The SEIS includes analyses of upstream and downstream emissions impacts from revised CAFE standards, as well as assessments of associated environmental and health effects. The report is referenced for public comment letters submitted on other agencies' rulemakings and is available through EPA's NEPA EIS database.

Sources: www.federalregister.gov

ITC Schedules Expedited Five-Year Reviews for Antidumping Orders on Chinese Chassis

The U.S. International Trade Commission scheduled expedited five-year ("sunset") reviews of antidumping and countervailing duty orders on chassis and subassemblies from China, following a determination of inadequate respondent participation. A staff report will be made available to party representatives and comments are due October 13, 2026. The Commission extended the review period by up to 90 days, citing the complexity of the matter.

Sources: www.federalregister.gov

USITC Receives Section 337 Complaint on Extrusion-Coated Magnet Wire Imports

The U.S. International Trade Commission announced receipt of a Section 337 complaint from Essex Solutions Inc. and Essex Solutions USA LLC concerning the alleged unlawful importation of extrusion-coated magnet wire by Wellascent Electronic (Ganzhou) Co., Ltd. and Wellascent Technologies USA LLC. The complainants seek a limited exclusion order and cease and desist orders. Public comments on potential public interest impacts are solicited, with a filing deadline eight days after publication.

Sources: www.federalregister.gov

White House Marks National Manufacturing Day and Cites Auto Industry Policy Actions

President Donald J. Trump proclaimed October 2, 2026, as National Manufacturing Day, highlighting the resurgence of American manufacturing with reference to over $11 trillion in investment since January 2025 and recent legislative measures impacting the automotive sector. The proclamation notes the expansion of full expensing on manufacturing investments, an increase of 72,000 manufacturing jobs in 2026, and ongoing policies targeting the industrial base including the recent finalization of vehicle efficiency standards and continued use of automotive-related tariffs.

Sources: www.whitehouse.gov

What We're Reading This Week

• States, cities sue US agencies over weaker vehicle fuel economy rules: Coalition of states and cities file suit challenging newly released federal fuel economy standards, alleging violation of statutory obligations.
• Trump: not going to be doing diesel export ban: President Trump announced the administration will not proceed with proposed restrictions on U.S. diesel exports despite earlier consideration.
• Why U.S. Diesel Is So Important to Major Trading Partners: U.S. diesel exports remain integral for economies in Mexico, Europe, and Brazil as policy uncertainty continues to affect global markets.
• Trump’s Threat to Ban Diesel Exports Sets Off Global Alarms: International stakeholders raised concerns following U.S. debate over a potential diesel export ban, with market volatility impacting energy prices.
• Trump says he is still considering diesel export ban: President Trump, on September 30, kept the option of a diesel export ban open as part of a broader energy strategy.
• Senate punts bill to permanently ban Chinese cars until after midterm elections: Senate delays decision on bipartisan legislation restricting Chinese electric vehicle imports, moving the issue beyond the 2026 midterms.
• COMMENTARY: Europe’s electric future needs a battery industry of its own: Analysis details how battery supply chain resilience is shaping European electric mobility policy.
• These Republicans Have Called on Trump to Ban Diesel Exports: Several Republican lawmakers advocate for U.S. restrictions on diesel exports in response to rising domestic prices.
• From pickups to idle plants: automakers seek lifeline from defence boom: Auto manufacturers look to defense industry contracts to offset declining plant utilization and weak domestic sales.
• What’s Behind the Diesel-Market Crunch: The Wall Street Journal examines the factors driving persistently high diesel prices and potential steps to ease supply pressure.

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