ICYMI: Canada paused its digital tax to avoid new U.S. tariffs and restart trade talks. President Trump warned of 35% tariffs on Japanese imports as trade talks stall over autos and rice. President Trump threatened to pull subsidies from Musk’s companies after criticism of his tax bill. GM beat a major class-action suit over defective transmissions. June auto sales fell as buyers pulled back after the pre-tariff rush.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
Canada drops digital services tax to salvage derailed trade talks with US
Canada halted the enforcement of its Digital Services Tax (DST) just a few hours before it was set to take effect on Monday in an effort to salvage trade discussions with the United States. The move came after President Donald Trump abruptly terminated trade discussions on Friday, calling the tax a “blatant attack” on American technology companies. Trump also warned that he would increase the tariff rates against Canadian goods within the week if the tax were to proceed. Read More
Trump signals 35% tariff on Japanese imports as trade talks stall
President Donald Trump announced that the U.S. could impose tariffs of up to 35% on Japanese imports starting July 9, following the expiration of a 90-day pause on country-specific duties. Talks between the U.S. and Japan have stalled, mainly due to U.S. demands for increased Japanese imports of American rice and automobiles. Japan is the U.S.’s sixth-largest trading partner and a leading source of imported vehicles, making the proposed tariffs especially significant for the auto industry. Read More
Tesla shares fall as feud between Trump, Musk escalates
The public feud between President Donald Trump and Tesla CEO Elon Musk escalated on Tuesday. Trump threatened to revoke billions of dollars in federal subsidies to Musk’s companies after Musk renewed his public criticism of Trump’s “Big Beautiful Bill,” a tax-cut and spending bill that narrowly passed the Senate on Tuesday. Read More
GM wins legal victory as court decertifies class-action lawsuit
General Motors (GM) won a major legal victory Friday when a federal appeals court voted to decertify a class action lawsuit accusing the automaker of knowingly selling about 800,000 vehicles with defective transmissions. In a 9–7 ruling, the 6th U.S. Circuit Court of Appeals in Cincinnati found that the differences among affected vehicle owners were too substantial to justify a single class action. Read More
US auto sales slow in June despite strong Q2 results from GM and Ford
U.S. light-vehicle retail sales slowed significantly in June after substantial gains earlier in the spring, when consumers rushed to buy before a 25% tariff on imports took effect. Mixed second-quarter results reflect this shift, with General Motors, Ford, and Toyota reporting solid volume increases, while import-reliant brands such as Audi, VW, Mazda, and Mitsubishi saw declines. The combined effects of higher prices, economic uncertainty, rising loan burdens, and shrinking inventory are now weighing on consumer demand. Read More
Next Week: Exclusive Interviews You Can’t Miss
2025 NADA Chairman Tom Castriota on dealer wins, tariffs and AI’s impact
The automotive industry is facing major shifts in affordability, regulations and technology. In this upcoming episode of Inside Automotive, Tom Castriota, 2025 NADA Chairman and owner of Castriota Chevrolet, shares key insights on recent dealer wins, challenges like tariffs and EV mandates, and how AI and advocacy will shape the industry’s future.
Why human connection still drives service department growth – Don Andres | Auto SCT Consulting & Training
In this upcoming episode of CBT Now, Don Andres, author of Why Auto Service Departments Fail to Grow and Owner of Auto SCT Consulting & Training, joins us to discuss how automation tools can both help and hinder dealership service departments. While AI offers efficiencies, Andres cautioned that an overreliance on tech risks ending customer relationships, which is a vital element for service approvals and retention.
