October 04, 2026 to October 10, 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

White House Issues Emergency Executive Order on Diesel Fuel Tax Relief

On October 5, President Donald J. Trump issued an executive order deferring federal diesel fuel excise tax payments and permitting temporary highway use of dyed diesel fuel due to supply constraints and price increases impacting the transportation sector. The order, effective immediately through December 31, directs the Treasury to provide penalty relief and prohibits penalties for dyed diesel use on highways. The White House called for agency coordination to ensure adequate distribution and highway safety measures, with implementation overseen by the Secretaries of Agriculture and Transportation. The order also contemplates legislative measures to potentially forgive deferred diesel tax obligations and instructs the IRS to prioritize compliance efforts. States are encouraged to align enforcement with the federal order.

Sources: www.whitehouse.gov

U.S. Department of Commerce Initiates Antidumping Review on Passenger Vehicle and Light Truck Tires from Thailand

The Department of Commerce issued preliminary results for its 2024–2025 administrative review of antidumping duties on passenger vehicle and light truck tires imported from Thailand. Commerce found that Sumitomo Rubber (Thailand) Co., Ltd. and non-examined companies maintained a preliminary weighted-average dumping margin of 1.14% for the review period ending June 30, 2025. Several other firms had their reviews rescinded following withdrawal of review requests. Interested parties have 21 days from October 9, 2026, to submit case briefs. Duties assessed as a result of these findings will apply to covered imports, with cash deposit requirements updated following final determinations.

Sources: www.federalregister.gov

USTR Requests Public Comments on EU Carbon Border Adjustment Mechanism Expansion

The U.S. Trade Representative opened a comment period, ending November 9, 2026, to solicit feedback on the impact of the European Union's Carbon Border Adjustment Mechanism (CBAM) and proposed expansions covering downstream steel- and aluminum-intensive products. The CBAM requires importers to report embedded emissions in select goods and acquire certificates reflecting the associated carbon cost, with products imported from January 2026 onward accruing financial obligations. The EU is considering legislation to cover additional steel-intensive items, with both the Council and Parliament proposing to expand the product list substantially beyond the initial European Commission proposal. Comments are sought regarding compliance burden, market access, enforcement, and economic effects on U.S. exporters.

Sources: www.federalregister.gov

CPSC Schedules Oral Comment Session on Proposed Lithium-Ion Battery Safety Standard for Micromobility Products

The Consumer Product Safety Commission announced a virtual public meeting for October 21, 2026, providing an opportunity for stakeholders to present oral comments on a proposed federal safety standard governing lithium-ion batteries used in micromobility products. Requests to present must be submitted by October 15, 2026, along with written statements. The rulemaking seeks to address risks associated with battery thermal runaway, referencing voluntary standards with proposed CPSC modifications. The session will be recorded and included in the rulemaking record.

Sources: www.federalregister.gov

Commerce Affirms Countervailing Duties on Passenger Vehicle and Light Truck Tires from Vietnam

The Department of Commerce concluded its first expedited sunset review of the countervailing duty order on passenger vehicle and light truck tires from Vietnam, determining that revocation would likely result in a continuation of subsidized exports. Net countervailable subsidy rates maintained are 7.89% for Kumho Tire, 6.23% for Sailun, and 6.46% for all others. The review was conducted with no substantive response from the Vietnamese government. The findings uphold existing duties on relevant tire imports from Vietnam.

Sources: www.federalregister.gov

What We're Reading This Week

• Trump signs order to expand access to tax-exempt diesel: President Trump signed an executive order expanding access to tax-exempt diesel fuel for highway use.
• How JD Vance tried to ease diesel pain as the GOP faces midterm woes: The administration moved to suspend some diesel taxes as midterm elections approached.
• EU says it agrees with China to halve hybrid vehicle exports to EU: The EU and China reached an agreement to halve Chinese hybrid vehicle exports to Europe.
• China, EU strike deal to halve Chinese hybrid exports: China and the EU agreed to halve Chinese hybrid vehicle exports amid ongoing trade dispute negotiations.
• Why EV sales are lukewarm in America, but hot in Europe: European electric vehicle sales outpace the U.S. despite slower American adoption rates.
• Sticky situation: Tyre industry struggles to clean up its rubber supply chain: The tire industry faces ongoing supply chain challenges with natural rubber sourcing.
• France’s EV price experiment: France tests new approaches to impact electric vehicle prices and demand.
• Britain set to levy tariffs on Chinese electric cars, The Times reports: The UK plans to impose tariffs on electric vehicles imported from China, according to The Times.

.