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Trade and Tariff Policies

• Foley & Lardner provided an update for multinational companies to mitigate risks posed by the Trump administration’s focus on drug cartels and transnational criminal organizations (TCOs). 
• Mexico will impose an Export Notice requirement for five tariff lines that include certain mechanical and electrical machinery, according to an update from Foley & Lardner.
• A Section 232 investigation into imports of semiconductors and semiconductor manufacturing equipment that may result in new import tariffs prompted widespread concern from automakers and other stakeholders in a review of public comments featured in Bloomberg. The Commerce Department did not provide an update on the expected outcome of the investigation.
• President Trump on June 12 stated he may raise automotive tariffs “in the not-too-distant future. The higher you go, the more likely it is they build a plant here.”
• The U.S. Supreme Court rejected a request from two family-owned businesses to expedite their challenge to President Trump’s broad “reciprocal” tariffs. A federal appeals court had ruled in a separate case that the tariffs can remain in effect at least until a hearing in late July.
• Ford and other automakers are still experiencing challenges obtaining adequate supplies of certain rare earth magnets two weeks after the announcement of a U.S.–China trade deal. 
• The Trump administration’s attention to the U.S. auto trade deficit with Japan is one of the key issues that have impeded that nation’s trade agreement negotiations. 

Automotive Key Developments

• Automotive News released its annual ranking of the top 100 global parts suppliers.
• U.S. new light-vehicle sales in June are projected to increase 2.5% year-over-year to reach a SAAR of 15 million units, according to a joint forecast from J.D. Power and GlobalData.
• A draft of the “big, beautiful” budget and tax bill released by the Senate Finance Committee on June 16 would end EV tax credits for all automakers 180 days after bill passage.
• California and 10 other states sued the federal government on June 12 over Congressional Resolutions that revoked Clean Air Act waivers which had allowed the Golden State to establish vehicle emission standards that were more stringent than federal requirements. The waivers had also facilitated a California program that required increasing percentages of zero-emission vehicle sales in the state over the next decade. 
• California Governor Gavin Newsom signed an executive order on June 12 reaffirming the state’s “commitment to accelerate the deployment of zero-emission technologies.” 
• The U.S. Supreme Court on June 20 ruled that fuel producers have standing to sue over California’s vehicle emissions standards.
• A Seattle federal judge on June 24 issued a preliminary injunction blocking the Trump administration from withholding funds for EV charging infrastructure projects in certain states, but stayed the order to allow time for an appeal.
•  The National Highway Traffic Safety Administration (NHTSA) plans to streamline reviews of automakers’ exemption requests to deploy self-driving vehicles without certain required human controls such as steering wheels or brake pedals.
• The Alliance for Automotive Innovation expressed concernsover risks to vehicles’ wireless safety features resulting from provisions in the “big, beautiful” bill that may require the Federal Communications Commission (FCC) to auction federal spectrum rights in the years ahead. Features at risk of losing functionality may include remote parking, hands-free trunk release, and anti-theft capabilities, as well as certain systems to prevent collisions.

OEMs/Suppliers 

• Certain ongoing trade challenges experienced by a Japanese supplier to Honda suggest “the true toll of the trade war on the auto sector will be magnitudes more than the billions of dollars forecast” by the top automakers, according to a report in Bloomberg. Japan’s top automakers estimated the Trump administration’s tariffs will cost them over $19 billion. 
• German automakers incurred approximately €500 million ($576 million) in tariff-related costs in April. 
• Marelli CEO David Slump cited tariffs “against automotive manufacturers and suppliers” as a key factor in the company’s Chapter 11 bankruptcy filing.
• Toyota intends to raise prices on certain vehicles sold in the U.S. by up to $270 per vehicle beginning in July in response to the Trump administration’s tariffs. Ford and Subaru raised vehicle prices by up to $2,000 because of the levies, and Mitsubishi will raise prices on U.S. vehicles by an average of 2.1%. 
• Consultancy AlixPartners estimated consumers’ new-vehicle prices will increase by nearly $2,000 per vehicle due to tariffs. 
• A number of parts suppliers are reported to be skeptical of certain Chinese automakers’ promises to adhere to 60-day payment terms. This coincides with concerns over the impact to profit margins and financial risk resulting from ongoing price wars among China’s car companies.
• Dana Inc. announced an agreement to sell its off-highway business to Allison Transmission for $2.7 billion. The divestment supports Dana’s goal to reduce the complexity of its business and “become a streamlined light- and commercial-vehicle supplier with traditional and electrified systems.” 
• Continental announced a partnership with GlobalFoundries to establish an Advanced Electronics and Semiconductor Solutions (AESS) organization to design automotive semiconductors.

Market Trends and Regulatory

• The Alliance for Automotive Innovation called for significant reforms to NHTSA, and stated the regulator has impeded automotive industry progress and innovation.
• Nippon Steel closed its $14.1 billion acquisition of U.S. Steel after reaching an agreement that will give the U.S. government approval over certain provisions such as job moves, facility closures or future acquisitions. 
• Exports of Chinese-built vehicles to Brazil are projected to rise by 40% year-over-year to represent approximately 8% of the nation’s total light-vehicle registrations in 2025. 
• China suspended vehicle trade-in subsidies in certain cities due to funding shortfalls, as well as scrutiny over the prevalence of exporting new zero-mileage cars as “used” to boost sales volumes.
• New-vehicle registrations in Europe rose 1.6% YOY in May, but declined 0.6% for the first five months of 2025, according to data from the European Automobile Manufacturers’ Association (ACEA).
• Ford will require the majority of its salaried workforce to report to the office four days a week.
• A report from a court-appointed monitor concluded that UAW President Shawn Fain unjustly withdrew certain key duties of Secretary-Treasurer Margaret Mock in 2024 after Mock was “falsely accused of misconduct.”
• Workers at GM’s plant in San Luis Potosí, Mexico will vote this week on whether to join the National Auto Workers Union (SINTTIA).

Autonomous Technologies and Vehicle Software 

• Waymo launched driverless rides in parts of Atlanta for Uber passengers on June 24, expanding a partnership that started earlier this year in Austin, Texas. Separately, Waymo applied for a permit to begin autonomous vehicle testing in New York City. 
• Daimler Truck subsidiary Torc Robotics announced a new $5.6 million engineering center in Ann Arbor, Michigan. 
• Livonia, Michigan-based Roush Industries was selected to scale upfitting trucks with autonomous driving systems for Kodiak Robotics. 
• Amazon-owned autonomous vehicle company Zoox opened a plant in Hayward, California that will be capable of producing up to 10,000 robotaxis annually. 
• China released draft guidance to regulate the export of data generated by cars in the country, including details of scenarios that may require security assessments for companies seeking to transfer data outside the nation. 
• Volvo and Daimler Truck announced the launch of joint venture Coretura to develop a software-defined vehicle platform for commercial vehicles. 

Electric Vehicles and Low-Emissions Technology 

• BloombergNEF expects battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) to represent 27% of U.S. new light-vehicle sales by 2030, from a previous forecast of 47.5%. The updated analysis eliminated 14 million units from the 2030 sales projection, and assumes California will retain its ability to set its emissions standards.
• A report from the Alliance for Automotive Innovation indicates BEVs and PHEVs achieved a 9.6% share of total new light-vehicle sales in the first quarter of 2025, representing a decline of 1.3 percentage points from the fourth quarter of 2024, and a 0.3 percentage point increase YOY. 
• Cox Automotive estimated new EV sales in May fell 10.7% year-over-year to 103,435 units, representing a 6.9% share of the total U.S. new light-vehicle market. The average transaction price (ATP) for a new EV in May declined 1% YOY to $57,734. 
• Leases represented nearly 60% of first quarter 2025 new EV sales in the U.S.,up from 36% one year ago, according to data from Experian.
• Automotive News provided an update on the status of notable U.S. battery manufacturing investments and projects. 
• Uber announced an international partnership with C40 Cities to increase access to charging infrastructure in London, Boston and Phoenix. Uber also launched the Electric Vehicle Infrastructure Estimator (EVIE) tool to help cities project EV charging demand from Uber drivers. Uber estimated there are 230,000 EV drivers on its platform globally, and charging access has overtaken vehicle cost as drivers’ top concern.
• Ion Storage Systems began small-scale production of solid-state batteries at its factory in Maryland. Solid-state technology is expected to significantly extend batteries’ range and improve charging speeds. However, the technology has a number of challenges to overcome to achieve cost-effective production at scale.

Analysis by Julie Dautermann, Competitive Intelligence Analyst