NADA continues to advocate aggressively on issues critical to the retail automotive industry. The following is an update on key developments. Please feel free to contact me at rdesilva@libertycarsnj.com with any questions.

Tariffs

The Trump administration recently announced a 25% tariff on heavy trucks imported from outside the U.S., effective October 1. This announcement regarding tariffs on foreign heavy-duty trucks follows two other significant updates: 

• On September 24, it was confirmed that the U.S. trade agreement with the European Union (EU) has been officially implemented, establishing a 15% duty rate on EU autos and auto parts that is retroactive to August 1. 
• On September 4, President Donald Trump signed an executive order to initiate a trade deal with Japan, which includes a 15% baseline tariff on automobiles. 

NADA has advocated against the imposition of tariffs on autos, trucks, and auto parts from U.S. trading partners with the Administration, emphasizing the effect tariffs will have on vehicle affordability, vehicle sales, and dealership viability. NADA has met with the White House, Office of the U.S. Trade Representative, Department of Treasury, Department of Commerce, other government agencies, and key Members of Congress to discuss the impact of tariffs on dealers and consumers.

NADA and ATD are engaging the Trump administration to best inform its decisions regarding tariffs. We will continue to inform decision-makers in Washington that franchised auto and truck dealers are fully American businesses, predominantly small businesses, and that tariffs impact them regardless of whether they sell domestic or international vehicles.

CARB ZEV Mandate

NADA, ATD, and the Alliance for Automotive Innovation recently filed a motion to intervene in California’s lawsuit against the Environmental Protection Agency (EPA). 

California filed this suit against the EPA hours after President Donald Trump signed three (3) Congressional Review Act resolutions that eliminated CARB’s ability to ban gas and hybrid cars, and diesel trucks further regulate NOx truck emissions. The lawsuit seeks to reinstate these regulations, known as Advanced Clean Cars II, Advanced Clean Trucks, and Omnibus Low NOx, respectively. 

In joining this suit, NADA and ATD protect dealers’ interests by opposing California’s efforts to revive its unobtainable standards that Congress properly recognized hurt vehicle affordability and are out of sync with customer demand. In the coming weeks, the court will rule on whether NADA and the Alliance can intervene in the suit in support of the EPA.

EPA’s EV Mandate

In September, NADA and ATD submitted comments to the EPA supporting its plan to eliminate the previous administration’s unreasonable emissions standards. 

The Biden administration’s greenhouse gas (GHG) rules were premised on overly aggressive assumptions regarding future electric vehicle market penetration without proper consideration of lagging charging infrastructure and consumer behavior. NADA and ATD support replacing those rules with technology-neutral national emissions standards that consider market realities. 

The rule the EPA proposed in July would create a seismic change in the regulatory environment regarding tailpipe emissions and could have significant impacts on the auto industry, from changing the types of cars automakers manufacture to vehicle supply and consumer preferences.

The EPA could issue a final rule repealing the GHG standards by the end of the calendar year. Opponents are almost certain to challenge it in court. In the meantime, NHTSA is expected to issue a rulemaking proposal to make major changes to Corporate Average Fuel Economy (CAFE) standards.

Catalytic Converter Anti‑Theft Legislation (Updated)

The Preventing Auto Recycling Theft (PART) Act has now been reintroduced in the House (H.R.5221) and Senate (S.2238). The reintroduced versions include non-controversial to help increase support for the legislation. 

This legislation addresses a major concern for dealers as it will require each catalytic converter to have a traceable identification number at the time of vehicle assembly. The bill also establishes a federal criminal penalty for the theft, sale, trafficking, or known purchase of stolen catalytic converters 

Catalytic converters are being stolen at increasingly higher rates because they contain valuable metals, such as rhodium, platinum, and palladium. Thieves can easily steal catalytic converters from vehicles, and since they are not readily traceable, there is a lucrative market for these stolen parts. These thefts are costing millions of dollars to businesses and vehicle owners alike. In addition, for consumers, replacing a catalytic converter is costly and often difficult due to the part’s high demand and supply chain shortages.

“Right to Repair” Legislation

NADA opposes the so-called “Right To Repair” legislation H.R.1566/S.1379, the “REPAIR Act,” which is unnecessary and has little to do with vehicle repair. 

Last month, NADA/ATD sent letters to the House of Representatives and the Senate strongly opposing H.R.1566/S.1379, as unnecessary and overbroad. The House bill may also exclude franchised dealers from receiving vehicle-generated data needed to repair a vehicle that is outside their franchise. Supporters are working to attach H.R.1566/S.1379, to next year’s Surface Transportation Reauthorization bill. 

Tax Legislation

President Donald Trump signed into law the “One Big Beautiful Bill Act” (P.L. 119-21) on July 4. For NADA members, the passage of the bill represents another significant victory this year, as many of the association’s tax priorities were addressed. 

NADA fought for many favorable tax provisions that were included in this landmark legislation such as the permanent: pass-through deduction, estate tax exemption, reversion to EBITDA for the interest deduction limit, and bonus depreciation. The Senate’s version of the bill would have retroactively repealed the EV tax credit for leased leased EVs. NADA strongly opposed this provision. The final bill included NADA’s request for a reasonable phase-out (Sept. 30) for the tax credit.