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Home » Global Supply Chain Management » Automakers Warn Against Giving China Foothold in U.S. Market

Automakers Warn Against Giving China Foothold in U.S. Market

A GLEAMING CAR SHOWROOM BEARS THE LETTERS BYD ABOVE THE DISPLAY FLOOR

Fatal for the competition? Photo: iStock/Robert Way

September 21, 2026
SupplyChainBrain

A coalition of automakers is urging the Trump administration to keep Chinese competitors from putting down roots in the American vehicle market.

According to Reuters, a group of companies that included General Motors, Toyota, Volkswagen, Ford, Hyundai, Stellantis and Tesla called on President Donald Trump in a letter to "maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles in the U.S." In a response to the group, the White House said that it's working with American automakers to revive the country's industry, "while safeguarding our national and economic security."

A Biden-era regulation effectively bans all Chinese automakers from selling or building passenger vehicles in the U.S., while the Trump administration has maintained 100% tariffs on all Chinese EVs. Automakers warned in their letter that allowing China to open a U.S. facility would "provide a foothold in the U.S. market at the expense of manufacturers operating here."

This comes ahead of a scheduled summit between Trump and China's President Xi Jinping, where the two are expected to discuss a range of issues, from artificial intelligence to global trade. Ahead of those meetings, reports surfaced that China was considering bringing representatives from automaker BYD, which has been blacklisted by the Pentagon since June over alleged ties to the Chinese military.

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