October 18, 2026 to October 24, 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 Modifies Tariffs on Motor Vehicles and Parts From Canada

President Donald J. Trump issued a proclamation on October 23, 2026, modifying the scope of additional ad valorem duties imposed on Canadian products to counteract what the administration calls Canadian discrimination against U.S. commerce in the motor vehicle sector. The update changes the list of Canadian products subject to a 50% duty—removing several product categories and newly including others. Effective October 30, 2026, certain Canadian goods will be added to, or removed from, the duties list. U.S. Customs and Border Protection and other agencies are directed to implement and administer these modifications. These tariffs are in addition to those imposed under Section 232 and apply to imports including those covered by the United States-Mexico-Canada Agreement. The Harmonized Tariff Schedule is updated accordingly, and earlier provisions inconsistent with this proclamation are superseded.

Sources: www.whitehouse.gov

FMCSA Seeks Public Comment on Grote Industries Auxiliary Warning Lamp Exemption

The Federal Motor Carrier Safety Administration announced availability of supplemental information regarding Grote Industries, LLC's application for exemption from the requirement that exterior lighting devices on commercial motor vehicles be steady-burning. If approved, this would allow use of Grote’s Rear-End Collision Warning (RCW) system, employing auxiliary amber warning lamps activated by a radar-based time-to-collision threshold. Grote clarified that, for the RCW system, the lamps pulse in amber and do not transition to steady red unless activated by braking, addressing previous concerns raised by industry stakeholders. The exemption, if granted, would apply to all commercial motor vehicles and specifically affect how warning devices on the rear-most trailer unit in combination vehicles function. The comment period on these clarifications is open until November 19, 2026. FMCSA provides instructions for filing confidential business information and reviewing docket materials.

Sources: www.federalregister.gov

Presidential Determination on Petroleum Production and Logistics Under the Defense Production Act

President Trump issued a memorandum on October 22, 2026, directing the Secretary of War under Section 303 of the Defense Production Act to support domestic petroleum production, refining, and logistics capacity. This determination follows the January 2025 declaration of a National Energy Emergency, citing insufficient domestic energy production and infrastructure as threats to national security and the economy. The White House cites financing, permitting, and supply chain constraints as limiting the private sector’s ability to rapidly expand capacity. The memorandum authorizes federal actions—including purchases, financial support, and regulatory waivers—to address capacity shortfalls. The Secretary of War is tasked with implementation, and the directive supersedes any inconsistent prior instructions.

Sources: www.whitehouse.gov

NHTSA Extends Comment Deadline on THOR-50M Crash Test Dummy Rule

The National Highway Traffic Safety Administration has granted a 30-day extension for public comments on its Supplemental Notice of Proposed Rulemaking regarding the THOR-50M advanced crash test dummy, following a request from the Alliance for Automotive Innovation. The SNPRM, initially published September 22, 2026, seeks input on a new spine configuration, alternative face foam, and other technical changes to the dummy’s specifications. The extension moves the comment deadline to November 21, 2026. The THOR-50M dummy is designed to represent an average adult male in frontal crash tests, with documentation including engineering drawings and qualification procedures. The agency aims to respond to stakeholder requests for sufficient review time given the volume and complexity of technical materials.

Sources: www.federalregister.gov

CPSC Issues Interpretive Rule Excluding Engine Additives from Portable Fuel Container Standards

On October 19, 2026, the Consumer Product Safety Commission finalized an interpretive rule regarding the definition of 'flammable liquid fuels' under the Portable Fuel Container Safety Act of 2020. The agency clarified that the term does not include fuel additives intended solely for improving engine performance, cleaning, stabilizing fuel, or preventing weather effects, provided they are not used to create heat or power. This action, effective immediately, exempts portable containers designed exclusively for such additives from mandatory flame mitigation device requirements. The decision follows industry comment and reflects recent court interpretations and regulatory policy intended to reduce unnecessary compliance costs.

Sources: www.federalregister.gov

What We're Reading This Week

• Auto industry bosses expect software, China growth to reshape sector by 2035, survey shows: Automotive executives anticipate software-driven features and China’s market expansion will materially change the industry landscape by 2035.
• China's Chery expects overseas-manufactured vehicles to top 50% of exports, exec says: Chery projects more than half its total vehicle exports will be manufactured outside China in coming years, according to a senior executive.
• Volvo Cars shares in record plunge on widening losses, job cuts: Volvo’s shares fell sharply after reporting increased third-quarter losses and outlining a workforce reduction plan.
• Europe car sales rise 10% in September as EV surge offsets combustion slump: EU passenger vehicle sales rose in September, as electric car growth outweighed declining gasoline and diesel sales.
• US military bans BYD vehicles from strategic air base in Japan: The U.S. Air Force prohibited BYD vehicles on a Japanese base citing security concerns.

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