Trump says he’s open to Chinese automakers building cars in the U.S.

President Donald Trump expressed willingness to permit Chinese automakers to manufacture vehicles in the United States, employing American labor, while maintaining existing limitations that have effectively barred Chinese-made cars from the U.S. market. The President dismissed claims that he could permit vehicles built in China to be imported into the U.S., arguing that the domestic market could be overwhelmed if restrictions were lifted.

He differentiated between imports and Chinese companies establishing plants within the U.S., likening such investment to that of Japanese automakers. In a Fox News interview, Trump stated, "If China wanted to come in, and open a plant to build their cars here, I’d be okay with it," adding that Chinese manufacturers would need to employ American workers.

Chinese electric-vehicle manufacturers, such as BYD and Geely Automobile, have experienced rapid expansion overseas, prompting apprehension among U.S. automakers as their vehicles gain traction in markets like Canada and Mexico. Chinese cars have been largely excluded from the U.S. due to substantial tariffs and Commerce Department restrictions pertaining to connected-vehicle systems linked to countries like China.

Trump's remarks precede an anticipated summit with Chinese President Xi Jinping in Washington. Similar statements were made in January, when Trump indicated that Chinese automakers could potentially manufacture vehicles in the U.S. Ford CEO Jim Farley and officials from the Trump administration had earlier discussed a potential framework for Chinese companies to produce cars in the U.S. under protections for domestic automakers, although no decisions were made.

The prospect remains politically charged, with Senators Elissa Slotkin and Bernie Moreno introducing legislation aimed at restricting connected vehicles, software, and hardware linked to China and other countries deemed U.S. adversaries. The measure, supported by Ford, General Motors, and the United Auto Workers, would also prohibit sales of connected vehicles from automakers with more than 15% ownership by Chinese entities.