In brief: new tariffs and bill to end electric vehicle mandate

25% tariffs on autos, tech, and pharma, third-party litigation reform in six states, and the end of New York congestion fees.

25% tariffs on imports of automobiles, technology, and pharmaceuticals

President Donald Trump announced the potential imposition of a 25% tariff on imports of automobiles, semiconductors, and pharmaceutical products. Trump stated that these tariffs could be significantly increased during the year, and companies that set up factories in the U.S. would be exempt from these tariffs, giving businesses time to adjust.

According to Reuters, a 25% automotive tariff would have a significant impact on the global industry, similar to the situation in 2018-2019 when Trump also threatened similar tariffs. Furthermore, this tariff measure could have significant repercussions on international trade relations, particularly with automobile-producing countries such as the European Union, Japan, and South Korea, who had already faced tariffs in the past.

The imposition of additional tariffs could escalate trade tensions and provoke retaliatory measures from these countries, affecting not only the automotive industry but also other sectors of the global economy. At the same time, the proposed tariffs on pharmaceutical products and semiconductors could disrupt global supply chains, raising costs for consumers and businesses in the U.S. The formal announcement regarding this decision will be made on April 2.

Litigations by third parties: increasing transparency

Third-party litigation financing is a growing legislative concern in several U.S. states. This phenomenon involves external companies financing lawsuits with high chances of success, which can complicate negotiations and increase the cost of settlements. Many of these cases are related to commercial incidents, such as those caused by trucks.

In response to this issue, several states have taken steps to regulate litigation financing. For example, Arizona and Georgia have proposed laws requiring the disclosure of financing agreements and prohibiting funders from influencing litigation strategy or outcomes. In Maryland, proposed bills require specific details and prohibit certain payments to those who refer consumers to external funders. In Ohio and Oklahoma, proposed laws aim to limit the influence of funders and foreign intervention, thus protecting the integrity of the judicial system.

The Owner-Operator Independent Drivers Association (OOIDA) supports reforms that increase transparency without hindering claimants’ ability. OOIDA emphasizes that truckers and parties involved in their sector are often subject to costly lawsuits financed by third parties for exploitation purposes. Regulation of litigation financing is gaining momentum across the country, with a clear focus on increasing transparency and preventing economic abuse in the legal process.

Bill to eliminate California’s electric vehicle mandate

Legislator Kevin Kiley initiated the process to eliminate the Advanced Clean Cars II initiative, just days after the EPA sent California’s vehicle emission exemptions to Congress. Kiley called this measure a “California electric vehicle mandate” and announced his intention to introduce a resolution under the Congressional Review Act (CRA) to dissolve it.

The CRA allows Congress to annul major regulations issued by federal agencies if a joint resolution of disapproval is passed. If a regulation is revoked, the agency cannot implement it again without Congressional approval. Kiley and other opponents argue that Californians should have the freedom to choose their vehicles without intervention from unelected regulators.

Additionally, similar resolutions are expected to dismantle Advanced Clean Trucks and the Heavy-Duty Omnibus regulation, both of which also concern the regulation of electric vehicles and have been adopted by several states. Trucking groups have praised the review of these regulations, pointing out that there was insufficient public debate before their implementation.

The debate surrounding these regulations highlights growing concerns about the economic impact and the preparedness of the transportation industry for electric vehicles.