Tariffs
On February 20, the Supreme Court struck down the sweeping tariffs that President Trump imposed using the International Emergency Economic Powers Act (IEEPA). The Court ruled that the IEEPA does not grant the president the authority to unilaterally create broad import taxes. The president has used IEEPA to impose reciprocal tariffs on nearly every country, using them as leverage in trade agreement negotiations.
For the auto industry, most trade barriers remain in place because they were enacted under different legal authorities. Tariffs on steel and aluminum, and the 25% duty on light- and heavy-duty vehicles and parts, rely on Section 232 of the Trade Expansion Act of 1962. Existing treaties also remain in effect, including the U.S.-Mexico-Canada Agreement (USMCA) and bilateral agreements with South Korea, Japan, and the European Union, which impose a 15% tariff on vehicles and auto parts.
After the Supreme Court decision, President Trump announced that he will set new, temporary 10% tariffs under Section 122 of the 1974 Trade Act. These tariffs would not apply to goods already subject to Section 232 tariffs, such as light- and heavy-duty vehicles.
New Rule Repeals EPA’s Unworkable GHG Standards
On February 12, the Environmental Protection Agency (EPA) announced a final rule revoking what’s known as the Endangerment Finding. Because of this revocation, the EPA no longer has authority to regulate greenhouse gas emissions for motor vehicles. As a result, the EPA’s unworkable GHG standards are repealed.
Opponents of the EPA rule have challenged it in court, which could delay its implementation. After the final rule was announced, NADA and ATD released a statement emphasizing that the new rule would help make vehicles more affordable, expand consumer choice, and increase ownership of newer, safer, and cleaner cars and trucks.
Catalytic Converter Anti-Theft Legislation
On February 10, the House Commerce, Manufacturing, and Trade Subcommittee voted to advance H.R. 5221, also known as the PART Act. The bill will now move forward to the House Energy and Commerce Committee for further markup and a potential vote. The PART Act enjoys bipartisan support.
The PART Act was introduced in the House (H.R. 5221) and Senate (S. 2238) last summer. H.R. 5221 currently has 59 bipartisan cosponsors.
Clearing this procedural hurdle brings this NADA and ATD priority one step closer to being included in the House Surface Transportation Reauthorization Bill. H.R. 5221 now heads to the full committee, where it was expected to be marked up in March.
So-Called “Right to Repair” Legislation
On February 10, the House Commerce, Manufacturing, and Trade Subcommittee advanced H.R. 1566, the “REPAIR Act”, to the House Energy and Commerce Committee by voice vote. NADA joined numerous stakeholders in a coalition letter opposing the REPAIR Act and also sent a letter of opposition to committee leaders.
The REPAIR Act was the most controversial bill discussed during the subcommittee markup. It received support only from its sponsor, Rep. Dunn (R-Fla.). Several other subcommittee members expressed concerns regarding the legislation. The debate over H.R. 1566 concluded with the full committee chair, Rep. Brett Guthrie (R-Ky.), securing a commitment from Rep. Dunn to “address concerns with stakeholders.”
H.R. 1566 now heads to the full committee. NADA is reaching out to ATAEs with members on the House Committee on Energy and Commerce, expressing strong dealer opposition to the bill.
Volkswagen/Scout
On January 20, a group of dealers from Volkswagen, Audi, and Porsche in Colorado filed a lawsuit in the Denver District Court against the state for issuing a dealer license to Scout Motors. The dealers’ suit claims that the Colorado Motor Vehicle Dealer Board misinterpreted state franchise law when it granted the dealer license in December, improperly allowing Scout to sell vehicles directly to consumers.
This litigation in Colorado is distinct from lawsuits involving Scout in Florida and California. NADA continues to oppose Scout’s direct-to-consumer strategy nationwide by supporting legal efforts in California and Florida to protect the state franchise model and consumers.
NADA will work closely with the Colorado Automobile Dealers Association (CADA) and its members to determine additional steps.
