Auto industry urges Trump to keep Chinese automakers out of US ahead of Xi meeting

By David Shepardson Fri, September 18, 2026 at 9:49 AM PDT | 2 min read

Publication Date: 2026-09-18 16:49:13

WASHINGTON, Sept 18 (Reuters) – Major automakers, suppliers, and dealers on Friday urged President Donald Trump to keep Chinese automakers out of the U.S. market, ahead of his meeting with China's President Xi Jinping next week.

Last week, Trump told Fox News he would be OK with Chinese car companies building cars in the United States.

"We urge your administration to maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles inside the U.S.," said a letter to Trump by six groups representing General Motors, Toyota, Volkswagen, Ford, Hyundai, Stellantis, Tesla, and others.

The White House and the Chinese embassy in Washington did not immediately comment.

Key Points from the Letter

• "Chinese automakers have zero market share in the U.S. Allowing them to open a domestic facility would provide a foothold in the U.S. market at the expense of manufacturers operating here," the letter stated.
• The letter was signed by:
• Alliance for Automotive Innovation
• American Automotive Policy Council
• Autos Drive America
• MEMA – The Vehicle Suppliers Association
• National Automobile Dealers Association
• Zero Emission Transportation Association

The groups argue that Chinese investment in the U.S. would not create new American jobs but instead "shift jobs away from manufacturers that have made generational investments in the U.S. and toward companies owned and operated by the Chinese government."

Political Reactions

Michigan Democratic Senator Elissa Slotkin cited a report that Xi may bring Chinese automaker BYD to Washington for the meetings, saying if that happens, "we can only assume there are deals afoot to allow Chinese cars to be imported, or Chinese companies are being invited to set up shop in the U.S."

Regulatory Background

• A regulation imposed by former President Joe Biden's administration in early 2025 effectively banned all Chinese automakers from selling or building passenger vehicles in the U.S., citing concerns that they could send sensitive driver data to China.
• Washington also maintains more than 100% tariffs on Chinese electric vehicles.
• Congress is currently considering legislation that would toughen the ban on Chinese vehicles.
• Bluetooth, Wi-Fi, cellular connectivity, and some satellite communications technologies are covered under the rules based on national security concerns linked to the ability of vehicles to collect sensitive data on American owners.

(Reporting by David Shepardson; Editing by Chris Reese)