TOGETHER WITH

Howdy Fam,

Today we're looking at China’s new bestie, tariff threats, and the ever-creeping monthly payment (and what we can learn from it.)

But first, we want to spend some time remembering what this industry can do when it bands together!

Charlesglen Toyota, 5th Avenue Volkswagen, and Lexus of Royal Oak worked with their teams to raise $265,000 for local charities, matching employee donations and backing causes close to home: mental health support, autism services, and animal rescue.

Best part: the three owners used to work together at the same store.

We can always use reminders that loving people more than you love cars is an global project.

Keep Pushing Back,
-Chris with Paul, Kyle & Kristi

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Ottawa will allow 49,000 Chinese-made EVs into Canada each year at a 6.1% tariff, down from about 106%, in exchange for agricultural concessions that include relief on Canadian canola. The decision sparked optimism about cheaper entry-level EVs, but heavy backlash from labor and industry leaders who argue it rewards unfair practices and could complicate USMCA politics.

On the U.S. side, the tone has been notably calmer. U.S. Trade Representative Jamieson Greer said at the Detroit Auto Show that the Canada move is not a major concern for American automakers, pointing to U.S. strength in the market and Canada’s limits on volume. “We have an enormous market share in Canada,” Greer said, adding that Canada has shifted from tariffs to a quota system but “we’ll still continue to sell to that market in a big way.”

As Paul and Kyle put it on the Automotive State of the Union, the move is “a straight up export import deal… dipping your toe in the water and not having to commit to manufacturing jobs or anything like that in Canada.”

Unifor President Lana Payne called the agreement “a self-inflicted wound to an already injured Canadian auto industry.” President Donald Trump, asked about the deal, offered a thumbs-up: “It’s okay… if you can get a trade deal with China, you should do that.”

The bigger question now is whether low-priced Chinese EVs reshape buyer expectations and force a new round of competitive responses.

Expect more shoppers bringing up ‘$25K EVs’ and asking why they cannot buy them here.

Still north but a little to the east, tariff threats are already hitting automakers in the market.

On Monday, European auto stocks slid after President Donald Trump threatened new tariffs on imports from eight European countries, citing his push around Greenland.

The plan calls for 10% tariffs starting Feb. 1, rising to 25% on June 1. Major names like Volkswagen, BMW and Mercedes-Benz fell roughly 2.5% to 3%, with Ferrari touching a 52-week low and Stellantis also down.

The reaction reflects how exposed automakers are to sudden policy swings, given global supply chains and heavy cross-border manufacturing.

Policy headlines can flip incentives and OEM messaging quickly, so stay close to program updates this week.

Of course, none of this is helping auto brands connect with buyers at the desk, where affordability is swallowing the conversation.

At the Detroit Auto Show, executives and analysts pointed to payments nearing $800 a month and transaction prices hovering around $50,000 as the forces most likely to slow U.S. sales in 2026.

GM and Ford posted record results for their lowest-priced nameplates, the Chevy Trax and Ford Maverick, as shoppers hunted for value. Automakers say they are rethinking product plans accordingly.

Ford is retooling its Louisville Assembly Plant to build a roughly $30,000 electric pickup next year, while Stellantis leaders said the company aims to add more vehicles priced under $40,000, with some potentially closer to $30,000.

Lawmakers are circling the issue, too, with a Senate affordability hearing expected to be rescheduled.

Lead the conversation with monthly payment options, not trim-level theory.

Thanks for reading, Friend! I fear some of the news can cause anxiety these days. But it’s never been good news that made this industry strong. It’s the people. So look to your neighbor, and be a neighbor worth looking to. That’s how we’ll thrive!