Trump warned over China autos in U.S.

As President Donald Trump meets with Chinese President Xi Jinping this week, lawmakers from both parties are warning the White House not to use the U.S. auto market as a bargaining chip in any deal with Beijing.

The warning stems in part from Trump’s suggestion in January that he might welcome Chinese automakers if they produced vehicles in the United States with American workers; The remarks were later walked back but still rattled auto state lawmakers, unions and industry groups. In his speech at the Detroit Economic Club in January, Trump said he would welcome Chinese automakers to produce in the United States.

“While the administration always seeks greater investment in America’s industrial revival, any notion that we would jeopardize our national security is unfounded and wrong,” White House spokesman Kush Desai said in an email. he said.

For lawmakers in auto-heavy battleground states like Michigan and Ohio, even a limited opening up to China could be politically explosive. They warn that if heavily subsidized Chinese automakers gain a foothold in the U.S. market, it could threaten domestic manufacturing jobs in states central to the 2026 midterm elections and the next presidential race.

“If your state is in the Rust Belt, allowing Chinese automakers into the U.S. market would be detrimental and politically bad for a lot of people,” said Stephen Ezell, vice president of the Information Technology and Innovation Foundation, a think tank in Washington that focuses on industrial competitiveness for Chinese automakers. “You’re talking about risks to industry, to jobs, to factories, to entire communities.”

So far, Democrats have touted the fight over Chinese autos as critical to preserving union jobs and domestic production, while Republicans see it as part of a broader economic nationalism effort to counter Beijing and protect critical industries.

Major Chinese automakers such as BYD, Zhejiang Geely Holding Group and SAIC Motor do not have a retail presence in the United States, where they face 100% tariffs and other national security hurdles.

But walling off the US market is complicated by China’s existing footprint in the US auto supply chain.

More than 60 U.S.-based auto suppliers are owned by companies in China, according to the global consulting firm. AlixPartners. This includes manufacturers of axles, airbags, windshields and steering systems. Chinese companies also hold about 5% of the roughly 10,000 U.S. auto suppliers, according to AlixPartners.

The connections extend to some of the most well-known vehicles sold in the United States, tracked by the National Highway Traffic Safety Administration.

Toyota’s The latest Prius plug-in hybrid has about 15% Chinese parts. Ford’s The latest Mustang GT uses a China-sourced six-speed manual transmission. General EnginesAlthough he supports trade policies, Sahin noted that many Chevrolet models, including the electric Blazer and electric Equinox, contain about 20% Chinese parts.

GM has set a 2027 deadline for some suppliers to terminate sourcing ties in China due to geopolitical issues, Reuters first reported in November.

Ford, Toyota and GM did not respond to requests for comment.

The growing political response has already translated into legislative action. Reps. John Moolenaar, R-Mich. and Debbie Dingell, D-Mich., introduced a bill this week that would impose restrictions on Chinese-made connected vehicles, software and hardware over national security and data concerns. Sen. Elissa Slotkin, D-Mich. and echoes Senate legislation by Bernie Moreno, R-Ohio.

Connected vehicles have internet access and wireless connectivity with other cars or trucks; Supporters say the technology could improve road safety.

“Every vehicle on American roads is a rotating data collection device,” Moolenaar said in announcing the bill Tuesday, warning that Chinese vehicles and components could “capture information about location, movement, people and infrastructure in real time.”

The harsh stance against Chinese vehicles comes at a time when U.S. consumers are struggling with a sharp purchasing shortage.

average new car price It was $49,461 in the US in April Kelley Blue Book. In China, consumers can choose from more than 200 battery-powered models priced under the $25,000 equivalent, including hybrids, according to DCar, a Chinese automotive content and car shopping platform.

“The reality is that we are behind Chinese cars in America, but we hope automakers can respond to this through innovation,” Ezell told CNBC. “If the industry is to thrive domestically, we ultimately need to compete through innovation.”

Chinese brands have already captured nearly 20% of the Mexican market, using their scale and low prices, according to Mexico’s national statistics agency. INEGI and industry groups have made deep inroads across Europe, raising fears in Washington and Detroit that the same strategy could work in the United States.

But China hawks argue that cheaper cars may carry costs in the long run. They warn that the auto industry could mirror solar panels, with Chinese companies using low prices, government support and scale to dominate global supply chains, outpacing high-cost rivals before gaining greater control over the market.

“China has a pattern of subsidizing costs, destroying an industry and then raising prices to keep the price low,” Dingell said. “This is about the future of America. This is about the future of American workers.”