ICYMI: Trump and Ishiba failed to reach a trade deal, escalating concerns over U.S. tariffs on Japan’s auto industry. Senate Republicans proposed ending key EV tax credits within 180 days. The Fed held rates steady and lowered its economic outlook. Ford paused production due to a shortage of rare earth magnets. A monitor found UAW President Shawn Fain retaliated against a top union official.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
Trump, Ishiba fail to reach trade deal amid mounting tariff pressure
U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba failed to reach an agreement on a trade package during the Group of Seven summit in Calgary, Canada, raising further concerns for Japan’s economy as U.S. tariffs continue to hit key industries, particularly automotive manufacturing. Read More
Senate Republicans move to eliminate EV tax credits within 180 days in sweeping budget bill
Senate Republicans introduced a sweeping tax and budget proposal on Monday that would terminate several federal incentives tied to electric vehicles and clean energy. Under the proposed legislation, the $7,500 federal tax credit for new EV purchases would end 180 days after the bill is signed into law, while the credit for leased EVs manufactured outside North America would end immediately. Read More
Fed holds rates steady as economic outlook dims
The Federal Reserve left interest rates unchanged after its fourth Federal Open Market Committee (FOMC) meeting of 2025, maintaining the federal funds rate at 4.25–4.50% for the fourth consecutive time. Despite leaving policy untouched, officials downgraded their economic outlook and signaled growing hesitation around rate cuts this year. Read More
Ford faces production setbacks amid rare earth magnet shortage
Ford Motor Co. is facing continued disruption in its vehicle production due to a shortage of rare earth magnets, which has already caused the temporary shutdown of one of its key assembly plants. The automaker idled its Chicago factory, which builds the Explorer SUV, for one week last month as supplies ran low. Read More
UAW monitor confirms retaliation by President Shawn Fain against top union official
The independent monitor overseeing the United Auto Workers (UAW) has confirmed that union President Shawn Fain retaliated against other union officials. Neil Barofsky, the court-appointed monitor, found that Fain targeted Secretary-Treasurer Margaret Mock after she refused or was reluctant to authorize certain expenditures for Fain’s office. Read More
Next Week: Exclusive Interviews You Can’t Miss
NADA’s Mike Stanton applauds U.S. decision to block California EV rule
The decision to block California’s electric vehicle mandate marks a major victory for the retail auto industry, consumers, and market-based policymaking. In today’s episode of Inside Automotive, NADA President and CEO Mike Stanton joins us to discuss why this landmark moment is a win for common sense and a necessary course correction that prioritizes practicality over rigid mandates.
Brian Benstock on how AI and data unlock ‘acres of diamonds’ for dealership growth
As the automotive industry navigates unprecedented uncertainty, dealers must shift from incremental thinking to exponential strategies, especially around artificial intelligence and data mining. On today’s episode of Thriving in Chaos, Brian Benstock, Partner GM and VP at Paragon Honda and Paragon Acura, challenges dealers to radically rethink how they serve, sell, and scale. With tens of millions in hidden profit lying dormant in dealership data, Benstock reveals how embracing AI and smarter communication isn’t just an option—it’s the key to unlocking a goldmine right beneath dealers’ feet.
