President Donald Trump’s administration enacted a host of policies in 2025 that impacted the U.S. auto industry, but there are more measures left on his agenda that he’s likely to pick up in 2026.
First things first: From gutting emissions rules to ending the federal EV tax credit, the President made several 2025 moves that shook up the auto sector. While fewer changes may be on deck for 2026, their impact could be even more profound,starting with the United States-Mexico-Canada trade agreement, reports The Detroit News.
The USMCA trade agreement, signed by Trump in 2020, could have multibillion-dollar implications for automakers, coupled with the effect of the tariffs amid ongoing tensions between the U.S. and Canada.
When Trump signed the agreement in 2020, he heralded it as the “best agreement we’ve ever made,” but in early December he said the U.S. might seek another deal, saying, “Mexico and Canada have taken advantage of the United States."
What they’re saying: "What was once expected to be a routine assessment aimed at improving implementation is now likely to become a high-stakes negotiation," the Washington-based Center for Strategic and International Studies wrote in a brief.
Why it matters: What happens next on USMCA and tariffs directly shapes factory costs, product mix, pricing pressure, and ultimately what sits on the lot and at what margin.
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Digging deeper: Other major auto policy measures the Trump Administration is likely to act on in 2026 include autonomous vehicles, safety tech, critical minerals and more environmental issues.
The Trump administration aims to remove barriers around autonomous vehicles, with Transportation Secretary Sean Duffy setting a goal of having "a single national standard that spurs innovation and prioritizes safety."
U.S. officials also plan to review a rule that would require automatic emergency braking technology in all new vehicles by 2029 and a congressional directive requiring anti-drunken driving technology on all new vehicles.
The President is looking to ramp up the U.S.’ supply of critical minerals, with $7.5 billion in new funding for the resources, which could serve key auto industry needs.
Ongoing legal disputes over the Trump administration’s efforts to roll back environmental measures, including one involving California over emissions standards and another regarding the EPA’s regulatory power, will likely come to a head in 2026.
Big picture: If 2025 was about dismantling old rules, then 2026 is about rewriting them.
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