Trump says open to China building cars in US as Xi visit looms
Chinese vehicles are essentially shut out of the US market by steep tariffs and a commerce department ban on national security grounds.
President Donald Trump suggested during a Fox News interview that he might be open to allowing a Chinese car company to build electric vehicles in the United States, provided they employed American workers. Trump reiterated that the U.S. had never allowed Chinese cars into the country and cautioned against the market being "overrun" by Chinese vehicles.
He reiterated his stance against Chinese vehicles being built in Mexico and shipped into the U.S. by emphasizing the importance of American workers. Trump maintained that he was the only one preventing Chinese cars from being imported into the U.S. Meanwhile, concerns are mounting among U.S. automakers about the potential threat posed by cheap, technology-laden Chinese electric vehicles.
Currently, Chinese cars are excluded from the U.S. market due to high tariffs and a ban on vehicle systems from US adversaries, including China. Trump's comments come as a planned summit with Chinese President Xi Jinping approaches, though similar remarks have been made previously. Earlier this year, Ford CEO Jim Farley and Trump cabinet members discussed a framework in which Chinese automakers could build cars in the U.S. while safeguarding domestic companies, but no decisions were made at the time.
Senator Elissa Slotkin, a Democrat from Michigan, warned against allowing Chinese cars into the U.S. market, calling it a "strategic mistake" that would negatively impact the U.S. auto industry and overall manufacturing capacity.
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