With a summit meeting with Chinese leader Xi Jinping fast approaching, Pres. Donald Trump suggested he could reverse course and open the American market up to Chinese automakers – if they set up U.S. plants. More from Headlight.News.
BYD officials reveal the new Megawatt charging system rolling out in China.
President Donald Trump has signaled he may open the U.S. market up to Chinese automakers, despite strong opposition from manufacturers like Ford, as well as both Democratic and Republican political leaders.
Automotive trade groups representing not only Detroit manufacturers but those from Europe, Japan and South Korea have warned that Chinese brands like Geely and BYD could pose an “existential threat,” and there’s bipartisan support in Congress for a proposal that could permanently bar them from the market.
Trump, however, said during a Fox News interview that he would be “OK with it” if the Chinese were to build plants in the U.S. and “hire our people.”
“An existential threat”
Ford CEO Jim Farley is one of those calling the possible arrival of Chinese autos an “existential threat.”
Trump’s comments come less than two weeks before Chinese President Xi Jinping travels to Washington for a high-level summit. The two officials are expected to discuss a variety of topics, including the War in Iran and ongoing trade friction. The auto industry has been central to the trade dispute and Trump has ramped up sanctions, including tariffs, first put into place by his predecessor, Joe Biden.
Chinese automakers have rapidly accelerated automotive exports. Starting the decade at barely 1 million vehicles a year, they are expected to reach 10 million this year, according to analyst Michael Dunne. By offering a mix of low prices and a high level of features, the Chinese saw their share of the European auto market reach 11% during the first half of 2026, while delivering nearly one in four of the vehicles sold in Mexico.
But with China now winning access to the Canadian market, competitors as diverse as Ford, Toyota and Hyundai are worried the U.S. could be next. That could pose “an existential threat” to the existing automotive establishment, warned the trade group The Alliance for Automotive Innovation, which represents most of the major U.S., European, Japanese and Korean automakers.
Trump sounds a conciliatory note
The looming summit between President Donald Trump and China’s President Ji Xinping could include discussions on opening the U.S. market to Chinese autos.
Currently, only a handful of Chinese vehicles are exported to the U.S., with tariffs running to more than 100% for battery-electric models. Ford last month announced plans to shift production of the Lincoln Nautilus from a plant in Zejian and Volvo moved production of its EX30 EV from China to Europe to reduce tariffs.
Facing the prospect of a Republican rout during the upcoming mid-term elections, some political observers believe Trump may seek to win concessions from Xi during the upcoming summit. The question is what the U.S. might have to offer in return.
For the moment, at least, the American president doesn’t appear willing to drop tariffs and other barriers facing Chinese vehicles. He expressed his concern that this would result in the American market being “overrun.” He also ruled out as an “un-happening” the prospect of allowing in Chinese vehicles that could be produced in Mexico, taking advantage of that country’s cheap labor.
On the other hand, “if China wanted to come in, and open a plant to build their cars here, I’d be OK with it — Japan does it — but they hire our people,” Trump said. “The big thing is they hire our people, they use our people.”
More Auto News
- White House Takes Aim at Ford Over China Ties
- Has SRT Found the Answer to Turbo Lag?
- Dodge Debuts Charger Super Bee – But There’s More Coming
“Let China come in”
BYD is opening a plant in Mexico and could follow with one in the U.S. if that would open the market up, some analysts have forecast.
This isn’t first time Trump has addressed the potential arrival of the Chinese. Last January, during a speech to the Detroit Economic Club, he said he was open to “let China come in.” And there have been recent reports the president would accept imports from the Asian powerhouse. Some had suggested this might be a way to drive down the rising cost of new vehicles at a time when the average transaction price has reached $50,000.
Trump, however, said during his Fox interview that this was a “total phony rumor,” insisting he is the “only one stopping them.”
In fact, there’s been strong opposition to Chinese auto imports on Capitol Hill. And it’s been one of the rare topics generating bipartisan support. Among those propping a ban on Chinese vehicles are Senator Bernie Moreno, an Ohio Republican who is a former auto dealer, and Michigan Senator Elissa Slotkin.
“We hear rumors that Trump is planning to allow Chinese cars to be sold in the U.S., as part of a larger deal he’s putting together,” Slotkin said last week. According to a report by Automotive News she added that it would be a “strategic mistake” that would “irrevocably impact” on U.S. manufacturing.
0 Comments