U.S. auto industry warns Trump not to open market to Chinese cars

The U.S. auto industry is telling President Donald Trump not to trade away the barriers that have kept Chinese cars, software and investment out of American showrooms and factories. As Trump prepares to meet with Chinese President Xi Jinping later this week, automakers, suppliers, steelmakers, unions and a bipartisan bloc of lawmakers are warning that any easing would put U.S. manufacturing, jobs and vehicle data security at risk.

The urgency has grown since Trump said in January that it would be “great” if Chinese automakers wanted to build plants in the United States and employ Americans. That comment rattled an industry that has spent years pushing successive administrations to block Chinese vehicles through tariffs, data-security rules and related restrictions. The fear is not only that Chinese brands could undercut U.S. rivals on price, but that their scale, state backing and EV technology could shift production and market share away from domestic factories.

The White House has already moved sharply in that direction. On May 14, 2024, the administration announced a 100% tariff on electric vehicles from China. The Commerce Department’s Bureau of Industry and Security followed with a January 14, 2025 rule restricting certain connected vehicles and related hardware and software linked to China or Russia. Together, those moves signaled that Washington sees Chinese auto technology as more than a trade issue, treating it as a national-security and supply-chain risk.

That backdrop has made Michigan especially sensitive ground. At a Detroit forum, Michigan Democratic Senator Elissa Slotkin urged Trump not to strike any deal with Xi that would open the door to Chinese investment in the U.S. auto sector or allow Chinese-brand vehicles into American showrooms. Slotkin and Republican Senator Bernie Moreno of Ohio rolled out the Connected Vehicle Security Act of 2026 in early May, a bill aimed at blocking Chinese vehicles, software and critical hardware on data-collection and security grounds. The proposal reflects how far the politics of autos have shifted, with privacy concerns now sitting beside tariffs and industrial policy.

For Trump, the choice is bigger than one meeting. Keeping Chinese cars and capital out could protect U.S. plants from a powerful low-cost competitor, but it could also delay consumer access to cheaper EVs and slow pressure on American automakers to cut prices. Letting Chinese firms in, whether through imports or U.S. factories, could sharpen competition and lower costs, while raising the stakes for domestic jobs, cybersecurity and supply-chain resilience. The fight over Chinese cars has become a test of whether Washington wants to shield American manufacturing from Beijing or force it to compete more directly with it.