Automotive industry urges Trump to bar Chinese carmakers from US

Major auto industry groups have urged the US government to keep Chinese carmakers out of the country, warning that their entry could threaten the domestic automotive sector, according to a letter reviewed by Reuters. The groups said China’s efforts to expand its role in global automotive manufacturing and gain access to the US market raise concerns about the country’s competitiveness, national security and industrial base. They called for maintaining a 2025 Commerce Department cybersecurity rule that effectively blocks most Chinese vehicles from entering the US market.

The Chinese embassy in Washington rejected the claims, stating that Chinese-made vehicles have gained popularity globally through technological progress and product quality rather than unfair practices. It also noted that China’s market remains open to international automakers, including companies from the United States.

The letter also criticised Canada’s decision to allow some Chinese vehicles into its market. It was signed by the Alliance for Automotive Innovation, the National Automobile Dealers Association, Autos Drive America, the American Automotive Policy Council and MEMA, the Vehicle Suppliers Association.

The groups urged the administration to prevent Chinese automakers from bypassing restrictions by establishing manufacturing operations in the United States, arguing that the risks to the US auto sector remain the same whether vehicles are imported or built locally. The appeal could add complexity to President Donald Trump’s planned meeting with Chinese President Xi Jinping. Trump is expected to visit China on March 31 as the two countries seek to maintain stability in their relationship following tensions linked to tariffs and restrictions on rare earth exports.

Earlier this year, Trump said he would not oppose Chinese automakers setting up production in the United States if they created jobs. Speaking to the Detroit Economic Club in January, he said companies could build factories and hire local workers.

In December, the Alliance for Automotive Innovation, which represents several major automakers including General Motors, Ford, Toyota Motor, Volkswagen, Hyundai and Stellantis, said China presents a growing challenge to the US auto industry and urged Washington to prevent Chinese state-backed automakers and battery companies from establishing manufacturing facilities in the country.