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Key Legal Insights from �鶹ֱ��’s Automotive Team

Analysis by Julie Dautermann, Competitive Intelligence Analyst

�鶹ֱ�� is here to help you through all aspects of rethinking your long-term business strategies, investments, partnerships, and technology. Contact the authors, your �鶹ֱ�� relationship partner, or our Automotive Team to discuss and learn more. 

AUTOMOTIVE KEY DEVELOPMENTS

• The most recent article in �鶹ֱ�� & Lardner’s 2026 AI in Manufacturing & Supply Chain Series is AI Bills of Materials (AI-BOMs) and Model Provenance: Contracting for Cybersecurity in AI-Enabled Manufacturing Supply Chains. Subscribe to get updates about new articles in this series.
• U.S. new light-vehicle sales in July 2026 are projected to reach a SAAR of 16.9 million units, representing an increase of 1.4% year-over-year, according to a from JD Power and GlobalData.
• released its 2026 list of the top 100 global parts suppliers.
• The U.S. Senate Commerce Committee to send the Connected Vehicle Security Act of 2026 () to the full Senate for consideration. Expanding on Commerce Department that restrict the sales of connected vehicles with software or hardware linked to China, the Senate proposal would prohibit the U.S. sale of connected vehicles by companies that are more than 15% owned by Chinese entities, such as . A remains under consideration in the House.

• On July 24, 2026, the National Highway Traffic Safety Administration (NHTSA) issued a granting a petition to begin the rulemaking process for potential new car door safety requirements. If finalized, the requirements would mandate a “robust and obvious door egress system in all motor vehicles.”
• Stellantis a supplier reward program that shares certain cost savings.

TRADE/TARIFFS

• �鶹ֱ�� & Lardner provided updates for multinationals regarding the escalation of customs and tariff enforcement by the Department of Justice and the ramifications of President Trump’s Executive Order strengthening Customs enforcement.
• �鶹ֱ�� & Lardner provided overviews of compliance best practices for tariff mitigation, and dubious tariff-saving “opportunities” for importers to avoid.
• �鶹ֱ�� & Lardner assessed the key implications of the U.S. Customs and Border Protection’s .
• On July 23, 2026, the Trump administration implemented tariffs of 10% to 12.5% under Section 301 of the Trade Act of 1974 on – including Canada, China, the European Union, and Mexico – for their “failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” This follows the on July 24, 2026 of temporary global 10% tariffs imposed by President Trump under Section 122 of the Trade Act of 1974 after the U.S. Supreme Court invalidated IEEPA-based tariffs. Two small businesses filed a lawsuit with the Court of International Trade to challenge the legality of the forced labor tariffs.
• President Trump utilized Section 338 of the 1930 Tariff Act to impose 50% tariffs on certain Canadian imports effective August 19, 2026, citing Canada’s discriminatory treatment of and other U.S. goods. The July 20 proclamation stated that counter-tariffs by Canada reduced U.S. auto exports to the nation by 22%, worth $5.6 billion, from April 2025 to March 2026. Prime Minister Mark Carney the need to accelerate trade negotiations with the U.S., while noting that Canada may pursue retaliatory levies if President Trump’s new tariffs are imposed in August.
• During last week’s bilateral negotiations in Mexico City on the United States-Mexico-Canada Agreement (USMCA), the U.S. urged Mexico to consider imposing national security-related duties on certain Chinese-made goods, including steel and aluminum, according to unnamed sources cited by . U.S. Trade Representative (USTR) Jamieson Greer a fourth bilateral negotiating round with Mexico is planned for September 2026 in Washington, D.C.
• USTR Jamieson Greer that he hopes to provide USMCA “options” by the end of 2026 to President Trump, while noting that certain issues such as rules of origin may take longer to resolve. Some of the USTR’s other priorities reducing the U.S. trade deficit with Mexico and measures to “incentivize supply chains to relocate” to the U.S.
• reports that �ѱ�澱����’s expanding fleet of Chinese-made heavy trucks is heightening U.S. trade officials’ concerns about the impact on North American supply chains, and this topic could be addressed during bilateral USMCA-related negotiations. Nearly two dozen Chinese truck companies are estimated to be operating in Mexico.
• , U.S. Customs and Border Protection will require importers of certain copper articles from non-U.S. countries of origin to report the primary country of smelt and cast. This guidance also states, “If the primary or secondary countries of smelt or cast are unknown, importers may report ‘OTH,’ or other.”
• President Trump an incentive program under which companies that build, expand, or refurbish plants in the U.S. to produce primary aluminum would receive a reduced tariff rate for the metal they ship into the country from abroad. Companies with approved plans must commit to beginning construction by January 20, 2029, and submit reports to the Department of Commerce to “ensure compliance with domestic manufacturing requirements.”
• The outcome of Section 301 manufacturing overcapacity investigations could have a significant impact on tariff rate increases, according to from S&P Global Market Intelligence. In a July 16 interview, USTR Jamieson Greer the administration’s Section 301 investigations into – including China, the EU, Korea, Vietnam, Taiwan, and Mexico – over manufacturing overcapacity are expected to conclude in the coming weeks. Greer did not provide a specific deadline.
• The Trump administration is launching a new Section 301 investigation to apply additional tariffs to goods from the EU in response to the bloc’s fines on U.S. tech firms.

OEMs/SUPPLIERS  

• GM its 2026 full-year guidance for earnings before interest and taxes (EBIT) to as much as $16 billion, from a previous maximum of $15.5 billion, lower tariff costs and stronger margins on large vehicles. The automaker lowered net income to a maximum of $9.8 billion, from a previous target of $11.4 billion, due to EV-related charges.
• Honda is plans to establish an eighth assembly plant in the U.S. The automaker’s key are in Ohio, Indiana and Alabama.
• Ford was a Defense Department contract to develop three truck prototypes based on the F-Series super-duty pickups.
• Daimler Truck a $40 million engineering hub in Portland, OR that will support the development of new generations of commercial trucks.
• GM of a Magna plant in the proximity of its Orion Assembly factory in Oakland County, Michigan.
• Honda its GAC Group joint venture in China through 2038, underscoring its commitment to compete with Chinese brands despite sales falling more than 50% from a 2020 peak of over 1.6 million units.
• Unifor members a new three-year contract with Ford in Canada, securing 3% annual wage increases and a planned $500M investment in the Essex Engine Plant in Windsor, Ontario. Unifor to begin contract negotiations with GM on August 10, 2026.

AUTONOMOUS TECHNOLOGIES AND VEHICLE SOFTWARE

• NHTSA plans to establish new safety standards for the operation of autonomous vehicles on U.S. roads before President Trump’s current term ends, according to in a recent interview. NHTSA intends to seek public comment from industry stakeholders to identify “behavioral competencies” for AVs, with tests to measure performance.
• Aurora Innovation plans to deploy its second generation Class 8 autonomous truck across its commercial network, which includes 10 throughout portions of Texas and Arizona.
• China issuing robotaxi permits following a suspension in April 2026 due to a system outage that impacted over 100 self-driving vehicles in Wuhan.

MARKET TRENDS AND REGULATORY

• Penske Automotive Group, Inc. (NYSE: PAG) it received and will review an unsolicited, preliminary and non-binding take private proposal from Penske Corporation and Mitsui & Co., Ltd.
• Automotive dealership M&A could , due to high franchise values for in-demand brands, as well as dealers motivated to sell because of market risks that include higher gas prices and vehicle affordability.
• A Department of Justice investigation of UAW President Shawn Fain over could lead to an extension of federal oversight into the union beyond the January 2027 expiration date.

HYBRID AND ELECTRIC VEHICLES

• Honda its only EV model in the U.S., the Prologue SUV, after the 2026 model year.
• Foxconn plans to launch its Model C electric crossover in the U.S. market in partnership with an unnamed automaker.
• Apple Maps will be integrated in ��ǰ���’s Universal Electric Vehicle platform .
• Ford and China’s Geely Automobile Holdings to co-develop and produce electrified models from both brands at ��ǰ���’s plant in Valencia, Spain.