TARIFFS The tariff landscape continues to change and cause uncertainty among dealers and consumers. In July, the Trump administration announced agreements with Japan, the European Union and Korea that will reduce the existing 25% tariffs on imported automobiles and auto parts to 15%. On July 31, President Trump raised tariffs on about 70 countries that have not made new trade deals with the United States, effective Aug. 7. Based on the information available at this writing, it does not appear the new tariffs will apply to auto and auto parts. NADA has advocated against the imposition of tariffs on autos and auto parts from U.S. trading partners with the administration, emphasizing the effect tariffs will have on vehicle affordability, availability, sales and dealership viability. NADA has met with the White House, Office of the U.S. Trade Representative, Department of the Treasury, Department of Commerce, other government agencies and members of Congress to discuss the impact of tariffs on dealers and consumers. NADA remains committed to engaging with the administration to best inform its decisions. We will continue to urge decision-makers in Washington to acknowledge that franchised auto dealers are fully American businesses, predominantly small businesses, and that tariffs impact them regardless of whether they sell domestic or international vehicles. EPA’S EV MANDATE In late July, the Trump administration proposed a new rule that would eliminate the EPA’s ability to regulate greenhouse gases from vehicles. If the rule is finalized, EPA greenhouse gas rules will be revoked. The proposal will go through a lengthy review process before it is finalized, likely in 2026. If finalized, NADA expects a variety of court challenges. NADA is also supporting a bill that would prevent the EPA mandates from going into effect while the proposed rule is being finalized. This bill is a separate effort to stop the EV mandates from the rule Trump proposed on July 29, but it illustrates the variety of tracks NADA is taking to combat these mandates. CARB/ZEV MANDATE In June, President Donald Trump signed into law three NADA-backed Congressional Review Act resolutions (CRAs) that revoked California’s ability to ban gas/hybrid cars and diesel trucks. Following the president’s signing, California’s Attorney General filed a lawsuit against President Trump and EPA Administrator Lee Zeldin, claiming that these actions are unlawful. Ten other states that were enforcing California’s now-defunct car and diesel truck ban rules joined the lawsuit. NADA and ATD continue to monitor California’s litigation and are prepared to intervene in defense of the CRAs. CATALYTIC CONVERTER ANTI-THEFT LEGISLATION The PART Act (S. 2238) was reintroduced in the Senate by Sens. Amy Klobuchar (D-MN) and Bernie Moreno (R-OH). Reps. Jim Baird (R-IN) and Betty McCollum (D-MN) are expected to introduce companion legislation soon. The reintroduced bill includes non-controversial revisions to help increase support for the legislation. This legislation addresses a major concern for dealers as it will require new vehicles to have unique, traceable identifying numbers stamped on catalytic converters at the time of assembly. The bill also establishes a federal criminal penalty for theft, sale, trafficking or known purchase of stolen catalytic converters. Despite the widespread support for the PART Act, the Alliance for Automotive Innovation is the only organization that is publicly opposing the legislation. VOLKSWAGEN/SCOUT AND HONDA/ AFEELA (DIRECT TO CONSUMER SALES) NADA has spoken with the new North American head of the Volkswagen Group, Kjell Gruner, and advised him of our position on Scout. Also, in June, NADA met with Lance Woelfer, VP, automobile sales, and Jennifer Thomas, head of Corporate Affairs Honda, to share our position with regard to Afeela. NADA will continue to work with state and metro dealer associations to protect the franchise system and stand behind dealers across the country. 11 THE GENERATOR
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