Trump Secures Japan Deal, EPA Plans Reversal

Download IPFS

The U.S. automotive and policy landscape saw major developments this week as President Donald Trump finalized a key trade agreement with Japan, the Environmental Protection Agency moved to reverse longstanding climate-related regulations, and multiple automakers reported sharp financial losses amid tariff pressure.

Trump, Japan Reach Auto Tariff Agreement

President Trump announced a new trade deal with Japan that lowers U.S. tariffs on Japanese auto imports to 15%, down from a previously threatened 25%. As part of the agreement, Japan has committed to investing $550 billion in the United States, although details of the investment structure remain unspecified. The deal marks a significant shift in U.S.-Japan trade relations and comes ahead of the administration’s August 1 deadline for new international trade pacts.

EPA Moves to Reverse Climate Rule

The Environmental Protection Agency is moving forward with a proposal to overturn its 2009 “endangerment finding,” a legal basis for regulating greenhouse gas emissions. The reversal would alter foundational legal authority for emissions-related rules in the transportation, energy, and manufacturing sectors. The proposal was submitted to the White House Office of Management and Budget on June 30 and is expected to enter a public comment phase after interagency review.

Stellantis Reports $2.7 Billion Loss.

Automaker Stellantis posted a €2.3 billion ($2.7 billion) net loss for the first half of 2025, driven by weak North American demand, canceled vehicle programs, and a €300 million hit from tariffs under President Trump’s trade policy. The company also reported a 6% global shipment decline in Q2, including a 25% drop in North America. Still, brands Jeep and Ram posted a 13% combined sales increase, partially offsetting the decline.

GM Sees 35% Profit Drop in Q.2

General Motors reported a 34.5% decline in second-quarter 2025 net income to $1.9 billion, largely attributed to tariffs, warranty costs, and electric vehicle inventory adjustments. Quarterly revenue totaled $47.1 billion, while adjusted EBIT fell to $3.0 billion, compared to $4.4 billion during the same period last year.

Hyundai, Kia Hit by Tariff Costs

Hyundai Motor reported a 16% year-over-year drop in Q2 operating profits, down to $2.64 billion, due to U.S. tariff-related losses totaling $606.37 million. Alongside its sister brand Kia, Hyundai is the world’s third-largest automaker by sales volume. The company warned of further declines if a more favorable U.S.–South Korea trade deal is not reached.