US President Donald Trump says he would not stand in the way of Chinese automakers setting up plants in the United States, provided they employ American workers. In a Fox News interview, he pointed to Japan as the model, noting that Japanese brands manufacture in the US with local hires, and stressed that hiring Americans is the key condition. He ruled out one scenario, however: Chinese firms producing vehicles in Mexico and shipping them into the US market. He added that he takes Chinese cars seriously as competitors.
The comments surfaced despite opposition in Washington. Michigan Senator Elissa Slotkin warned that reports of Trump planning to let Chinese vehicles be sold in the US as part of a broader deal under construction would amount to a strategic mistake. Trump dismissed her remarks as false gossip, insisting he has so far kept Chinese vehicles out of the country.
Existing policy remains restrictive. A regulation introduced under the Biden administration in early 2025 effectively bars Chinese carmakers from selling or producing passenger cars in the US, and Chinese-built electric vehicles face tariffs exceeding 100 percent. American automakers have pressed Trump to meet President Xi Jinping in Washington within two weeks, hoping the talks will not open the market to Chinese brands.
Industry pressure on Capitol Hill is also intensifying. Last week the Alliance for Automotive Innovation, representing General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis and other major players, urged Congress to pass a permanent legislative ban on Chinese vehicles by the end of December. Its CEO, John Bozzella, argued that Chinese manufacturers are flooding global markets with subsidized vehicles loaded with connected hardware and software.