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As tariff threats come and go, we’ve got you covered with the latest information. Today features the view from north of the border with President and CEO of Global Automakers of Canada David C Adams. Plus, we talk about a new South Carolina bill designed to let Scout go around franchise laws.

Show Notes with links:

• President Donald Trump announced a temporary suspension of planned U.S. tariffs on Mexico after reaching an agreement with Mexican President-elect Claudia Sheinbaum. The deal includes Mexico deploying 10,000 National Guard troops to its northern border, with a primary focus on stopping fentanyl trafficking and further negotiations on security and trade.
  • Trump had planned to impose 25% tariffs on all Mexican goods starting Feb. 4 but agreed to pause them in exchange for Mexico's commitment to increased border security.
  • U.S. officials from the State, Treasury, and Commerce departments will lead further discussions, with Trump saying he will participate directly.
  • Trump confirmed tariffs on Chinese imports would proceed as planned.
  • U.S. tariffs on Canada are going to be postponed by 30 days as the two countries negotiate a border deal, Prime Minister Justin Trudeau of Canada said after finishing a second call with President Trump.

• Global Automakers of Canada (GAC) is the national trade association representing the Canadian interests of 15 of the world’s most respected automakers. David C Adams, President of the Global Automakers of Canada, joins the show now to talk about the evolving situation.
  • In a statement issued on February 1st, Adams stated: “The United States and Canada aren’t just each others’ largest trading partners, but we actually build things together, not for each other,” said Adams. “There is no other industry where this is the case more than the automotive industry - where we have had sectoral free trade between the two countries since 1965.”

• South Carolina is making waves as a new bipartisan bill aims to allow direct-to-consumer EV sales. If passed, this could be a game-changer for Volkswagen-backed Scout Motors, which is set to build a massive $2 billion plant in the state.
  • Current franchise laws ban direct-to-consumer vehicle sales—the new bill, the South Carolina Consumer Freedom Act, would change that, as the bill specifically applies to automakers that have never had a franchise dealership agreement.
  • Dealers aren’t happy—the South Carolina Automobile Dealers Association strongly opposes the legislation, claiming it unfairly benefits Scout Motors.
  • Previous efforts to allow direct EV sales in South Carolina have failed, with a similar bill in 2019 not advancing past committee. If passed, the new bill could set a precedent for other states with similar restrictions.
  • While Governor Henry McMaster has not taken a position, he told local

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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