{"id":68949,"date":"2026-01-29T14:01:04","date_gmt":"2026-01-29T17:01:04","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/887645985"},"modified":"2026-01-29T14:01:04","modified_gmt":"2026-01-29T17:01:04","slug":"3-regulatory-topics-automakers-should-watch-in-2026","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/29\/3-regulatory-topics-automakers-should-watch-in-2026\/","title":{"rendered":"3 regulatory topics automakers should watch in 2026"},"content":{"rendered":"
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Automakers are navigating a regulatory environment defined by uncertainty in 2026.<\/p>\n

\u201cA shifting policy landscape is a new normal,\u201d said Jonathan Smoke, executive vice president and chief strategy officer at Cox Automotive, in a call discussing expectations<\/a> for the 2026 market.<\/p>\n

Several federal rules are delayed, under review or otherwise in flux. And according to industry experts, that volatility creates real financial risk and complicates long-term investment decisions.<\/p>\n

\u201cIf you make the wrong bet, you waste a lot of capital,\u201d said Collin Shaw, president of the Motor and Equipment Manufacturers Association\u2019s OEM suppliers division.<\/p>\n

However, despite the uncertainty, industry experts agreed three regulatory topics \u2014 the Trump administration\u2019s evolving policies on trade, emissions and safety standards \u2014 top the list of U.S. storylines to watch in 2026.<\/p>\n

1. Trade policy: What will happen with tariffs, and to the USMCA?<\/h3>\n

The United States-Mexico-Canada Agreement is officially up for a joint review this year, with the three countries expected to begin talks July 1. While President Trump has said<\/a> that the trade deal is \u201cirrelevant\u201d to the United States, industry experts stress that USMCA is critical to the North American supply chain.<\/p>\n

\u201cUSMCA is priority one, two and three\u201d for MEMA in 2026, Shaw said, reflecting a sentiment largely shared across the industry<\/a>.<\/p>\n

Automakers and suppliers have spent years aligning production and sourcing around the agreement, said Shea Burns, a partner in the automotive and industrial practice at AlixPartners, and any changes to the deal could require costly adjustments.<\/p>\n

In addition, the administration\u2019s ever shifting tariff policy<\/a> continues to complicate automaker planning.<\/p>\n

\u201cIf tariffs were going to be permanent, [automakers] could invest even more in bringing back manufacturing to the U.S.,\u201d said Burns. But the uncertainty means the industry is hesitant to spend, he said.<\/p>\n

2. Emissions standards: How deep will rollbacks and fuel economy rule changes go?<\/h3>\n

Last year, the Trump administration upended Biden-era standards on emissions and electric vehicles, and the regulatory rollback is expected to continue.<\/p>\n

\u201cWe know the direction they\u2019re going,\u201d Burns said, adding that the bigger question is whether the administration\u2019s changes will stand over time.<\/p>\n

The Environmental Protection Agency may soon finalize a rule proposed in August<\/a> that would eliminate vehicle tailpipe emissions requirements. The rule would also rescind a 2009 ruling declaring that carbon dioxide, methane and other greenhouse gases threaten public health, a finding that serves as the legal foundation<\/a> for many pollution regulations.<\/p>\n

Legal challenges<\/a> concerning the proposal have slowed the regulatory process, but a revocation of the \u201cendangerment finding\u201d would make it more difficult for future administrations to enact emissions standards.<\/p>\n

\u201cThe administration does seem to be trying to attack [standards] from multiple points,\u201d Burns said, suggesting a broader effort to prevent future administrations from reinstating certain regulations.<\/p>\n

The EPA is also aiming to delay implementation of Biden-era emissions rules, according to a December op-ed<\/a> by Aaron Szabo, assistant administrator for the EPA\u2019s Office of Air and Radiation. The emissions standards<\/a> for light- and medium-duty vehicles would have become effective with model year 2027. Szabo said that the EPA will propose a two-year delay, while reworking the emissions rules for model year 2029 and forward \u2014 a move that would apply only if emissions standards are not eliminated altogether<\/a>.<\/p>\n

In December, President Trump announced<\/a> a \u201creset\u201d<\/a> of the Biden-era Corporate Average Fuel Economy standards, which would have required automakers achieve average fuel economy of 50.4 miles per gallon by 2031. Instead, the proposed rule<\/a> from the National Highway Traffic Safety Administration calls for an industry-wide fleet average of approximately 49 mpg for model year 2026 passenger cars and light trucks, with incremental improvements through 2031.<\/p>\n