Trade Groups Reportedly Urge Trump To Keep Chinese Carmakers Outside U.S. Borders

Reuters reported on Friday that the Alliance for Automotive Innovation, ‌National ⁠Automobile Dealers Association, American Automotive Policy Council and other groups sent a letter to the Trump administration.

• The groups sent the letter ahead of Donald Trump’s planned meeting with Chinese President Xi Jinping.
• Currently, 2025 U.S. Commerce Department cybersecurity regulation keeps Chinese automakers outside of the U.S. market.
• However, Trump had said earlier this year that he is open to Chinese automakers building vehicles in the U.S.

Major trade groups have reportedly urged the Trump administration to keep Chinese automakers out of the American car market.

Reuters reported on Friday that the Alliance for Automotive Innovation, ‌National ⁠Automobile Dealers Association, American Automotive Policy Council and other groups sent a letter raising concerns about China’s efforts to “dominate global automotive manufacturing and gain access to the U.S. market.”

Trade Group Demands

“​These actions pose a direct threat to America’s global competitiveness, ⁠national security, and automotive industrial base." the letter read, as per Reuters. They also urged that the administration reject any attempt of Chinese manufacturers setting up production in the U.S. in a bid to circumvent current restrictions.

"The market distortions and risks to the auto industry in the U.S. are fundamentally the same whether these vehicles are imported or produced domestically." the letter reportedly said. The groups sent the letter ahead of Donald Trump’s planned meeting with Chinese President Xi Jinping.

Current Regulations

Currently, 2025 U.S. Commerce Department cybersecurity regulation keeps Chinese automakers outside of the U.S. market. The trade groups said that it should be maintained that way.

However, Trump had said earlier this year that he is open to Chinese automakers building vehicles in the U.S., Reuters noted.

“The competition is getting tougher. Namely, the Chinese OEMs are expanding globally, and the industry faces lower returns due to the EV overcapacity and global pressures,” Ford, a member of the Alliance for Automotive Innovation. said in November.

The group also represents General Motors, Toyota Motor, Volkswagen, Hyundai, and Stellantis.

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