Key facts
- US automakers, suppliers and dealers urged President Donald Trump to keep Chinese automakers out of the US market.
- The groups cited concerns that Chinese investment would shift jobs away from domestic manufacturers.
- A Biden administration regulation effectively bans Chinese automakers from selling or building passenger vehicles in the US due to data security concerns.
- Washington maintains over 100% tariffs on Chinese electric vehicles.
- Hyundai CEO Jose Munoz warned of a potential surge in Chinese vehicle imports to the US, mirroring European market trends.
- Chinese vehicles are 30%-40% cheaper in some European markets, and Chinese brands hold 9% market share in the EU and 15% in the UK.
Major automakers, suppliers and dealers have urged President Donald Trump to maintain policies that prevent Chinese automakers from selling, importing or manufacturing vehicles in the US, ahead of his meeting with Chinese President Xi Jinping. The groups argue that allowing Chinese companies a foothold in the US market would displace domestic manufacturers and shift jobs.
Last week, Trump indicated he would be open to Chinese car companies building vehicles in the United States. However, the letter to Trump stated that Chinese investment in the US would not create new American jobs but would instead shift jobs away from companies that have made generational investments in the US.
Hyundai Motor CEO Jose Munoz had previously warned that the US faces a potential influx of Chinese automobiles, mirroring the disruption seen in Europe's car market, unless Washington maintains tariffs and other market-access safeguards. Munoz noted that Chinese vehicles are 30% to 40% cheaper in some European markets, and Chinese brands hold over 9% market share in the EU and 15% in Britain. The US currently imposes approximately 100% tariffs on Chinese electric vehicles.
A regulation imposed by the Biden administration in early 2025 effectively banned all Chinese automakers from selling or building passenger vehicles in the US on national security grounds, citing concerns that vehicles could collect sensitive driver data and send it to China. Congress is also considering legislation to toughen this ban.
Separately, Hyundai has delayed the launch of its in-house Level 2++ advanced driver-assistance system to late 2029, and plans to partner with Nvidia for vehicles equipped with Level 2+ and Level 2++ systems in 2028.