5 days ago
CNBC Sep 17, 2026

Auto industry urges Trump to bar Chinese automakers in U.S. ahead of Xi visit

Leaders from six major U.S. automotive trade groups have collectively urged President Donald Trump to uphold policies that prevent Chinese automakers from entering the American market, whether through sales, imports, or manufacturing within the U.S. Their letter, sent in advance of Chinese President Xi Jinping’s upcoming visit to Washington, emphasizes the critical importance of protecting the domestic auto industry. It states that the automotive sector is essential to the nation’s advanced manufacturing and defense capabilities, and warns that once this industrial base is damaged, it would be difficult to rebuild quickly.

This strong industry appeal comes shortly after President Trump remarked in an interview that he would be open to allowing Chinese car manufacturers to open production plants in the United States. However, the trade groups contend that permitting Chinese automakers to set up manufacturing operations domestically would distort fair competition and threaten the progress made by the administration in preventing Chinese dominance in pivotal industries. They highlight concerns over the significant government subsidies Chinese companies receive and their rapid expansion into global markets.

The letter was signed by representatives of all key segments of the U.S. automotive industry, including franchised dealers, domestic and foreign automakers, and notable players like Tesla. This coalition aims to present a unified industry stance, reflecting widespread apprehension about potential Chinese influence in the U.S. auto sector. The groups stress that preserving a strong and independent domestic automotive industry is vital for economic and national security reasons.

This initiative is part of ongoing efforts by the American automotive industry to influence administration policy regarding China’s role in the U.S. market. As the Trump administration prepares for high-level diplomatic engagement with China, these trade associations are intensifying their push to maintain a tough stance on Chinese auto market entry, underscoring the strategic importance of the issue for American manufacturers and workers.

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