Key Legal Insights from Foley’s Automotive Team Analysis by Julie Dautermann, Competitive Intelligence Analyst KEY DEVELOPMENTS - President Trump announced he will raise U.S. import tariffs on European cars and trucks to 25% from 15% if the 27-member bloc does not formally approve by July 4, 2026 a previously negotiated framework trade deal. - As of May 11, the Trump administration was issuing more than $35.5 billion in refunds to importers whose tariff-refund claims were approved after the U.S. Supreme Court ruled the president’s IEEPA-based tariffs were unlawful. - A federal appeals court temporarily paused a decision that had found President Trump’s new global tariffs—imposed under Section 122 of the Trade Act—were unlawful. - In a recent letter, seven major automotive trade associations urged the U.S. Trade Representative to extend the U.S.-Mexico-Canada Agreement (USMCA), rather than pursuing separate bilateral deals. - Automotive News provided an update on the Trump administration’s potential priorities for USMCA negotiations with Mexico. - A number of key stakeholders in the Canadian auto industry expect USMCA negotiations to extend past the July 1, 2026 timeline for the agreement’s scheduled review. - GlobalData revised its 2026 U.S. light-vehicle sales forecast to 16.0 million units, representing a downward adjustment of approximately 100k units. The stand-off between the U.S. and Iran was cited as the reason for the revision, and GlobalData stated, “While we continue to assume that a solution will eventually be found and that oil prices will fall later in the year, there is enough uncertainty to lead us to be more cautious with the 2026 forecast.” - Analysts and oil executives warned that shortages of key fuels in certain markets, and escalating prices,are a growing risk in the coming weeks if shipping does not resume in the Strait of Hormuz. OEMs/SUPPLIERS - More than 60 auto