President Donald Trump suggested he might be willing to allow a Chinese car company to build electric vehicles in the US if it employed American workers, while pledging to maintain the effective US ban on imported vehicles from China. Speaking in a Fox News interview, Trump said he would be 'okay with it — Japan does it — but they hire our people', emphasizing that 'the big thing is they hire our people, they use our people'. However, he rejected the suggestion that he would allow Chinese cars to be imported into the US, stating 'We don't allow his cars into the United States, and we never did', referring to Chinese leader Xi Jinping, adding that if that wasn't the case the US automobile market would be 'overrun'. Trump clarified he doesn't want Chinese companies to 'build in Mexico and just, you know, build it inexpensively and ship it across the border', calling that 'un-happening'.
The Trump administration has escalated criticism of Ford's business relationships with Chinese companies, with Transportation Secretary Sean P. Duffy expressing 'profound concern' about the automaker's strategic trajectory. In a letter to Ford CEO Jim Farley dated September 3, Duffy claimed Ford is 'actively intertwining its future with Chinese state-backed enterprises' and criticized the company for 'prioritizing imported Chinese technical expertise' even in scaled-back operations. The criticism centers on Ford's licensing deal with Chinese battery manufacturer CATL, first signed in 2023, which would have allowed Ford to manufacture EV batteries using CATL's chemistry. Duffy argued that 'the prioritization of imported Chinese technical expertise challenges the spirit of American national and economic security' and 'helps strategic adversaries secure a vital foothold in Western markets'. The transportation secretary also criticized Ford's recent deal with Geely in Spain and ongoing talks with BYD to share hybrid vehicle components.
Senator Elissa Slotkin, D-Mich., has picked up early signals that the Trump administration could ease restrictions on Chinese vehicles entering the US market, though she has not identified a source for the claim and the White House has not confirmed any policy change. According to a Reuters report, this potential shift comes as President Trump and Chinese President Xi Jinping are scheduled to meet in Washington on September 24, a visit Trump extended during his May trip to Beijing. The timing has fueled speculation among members of Michigan's congressional delegation about what trade issues could be on the table. However, Congress is moving in the opposite direction, with Slotkin and Ohio Republican Senator Bernie Moreno pushing bipartisan legislation to tighten restrictions on Chinese vehicles and connected-vehicle technology. Trump told Fox News the suggestion that he would allow Chinese cars to be imported into the US was a 'total phony rumor', adding he's the 'only one stopping them'.
Chinese vehicles currently face steep barriers in the US market with a 25% tariff on imported vehicles, layered on top of other duties, keeping Chinese brands such as BYD and Geely out of American showrooms even as they gain market share in Europe, Mexico and Canada. As reported by Investing.com and Moneycontrol, Trump rejected the suggestion that he would allow Chinese cars to be imported into the US, saying 'We don't allow his cars into the United States, and we never did', referring to Chinese leader Xi Jinping. He added that if that wasn't the case, the US automobile market would be 'overrun'. Cheap, tech-laden Chinese EVs from companies like BYD Co. and Geely Automobile Holdings Ltd. are rapidly gaining global market share and are appearing in both Canada and Mexico, amplifying concerns among US auto executives that they could soon seek inroads in America. Currently, Chinese vehicles are essentially shut out of the US market by steep tariffs and a Commerce Department ban on national security grounds that covers so-called connected vehicle systems from US adversaries including China.
The potential for Chinese automakers entering the US market has raised concerns among US auto executives, with cheap, tech-laden Chinese EVs from companies like BYD Co. and Geely Automobile Holdings Ltd. rapidly gaining global market share. According to Investing.com and Moneycontrol, Michigan Senator Elissa Slotkin warned against letting Chinese cars enter the US marketplace, calling it 'a strategic mistake' that would 'irrevocably impact' the American auto industry and manufacturing capacity. Slotkin and Ohio Republican Senator Bernie Moreno have introduced legislation that would ban connected vehicles, software and hardware linked to adversarial countries including China. The broadly written measure, backed by Ford, GM and the United Auto Workers, would prohibit the sale of connected vehicles by automakers that are more than 15% owned by Chinese entities, though it has raised concerns that it may inadvertently bar other foreign automakers like Mercedes-Benz Group AG, which has nearly 20% Chinese ownership. Ford CEO Jim Farley and Trump cabinet members earlier this year held a preliminary informal discussion about how a potential framework might work in which Chinese automakers could build cars in America while offering some protection for domestic companies.
