President Donald Trump remains open to allowing Chinese automakers to build vehicles in the U.S.—even amid firm opposition to the idea from U.S. political and industry leaders.
The details: The president told the Fox News program "The Ingraham Angle" that he is “okay” with China wanting to come into the U.S., but with some stipulations.
Likening them to Japanese companies, Trump reiterated some of his previously expressed views on Chinese automakers entering the U.S.—they would have to build vehicles here and hire American workers.
The president also said he does not want Chinese automakers building vehicles in Mexico and shipping them to the U.S.
Amid his openness to Chinese automakers, Trump also insists that he has been the one keeping their vehicles out of the U.S., making his position on the issue unclear at times.
"I'm the one that kept them out—the tariffs kept them out... unlike Europe, which is being decimated," said President Trump, speaking to reporters, according to Rapid Response 47.
Why it matters: Allowing Chinese automakers to build vehicles in the U.S. could significantly reshape the competitive landscape for dealers, potentially introducing new brands and lower-priced products while forcing existing automakers and retailers to compete with Chinese manufacturers that have rapidly expanded in other global markets.
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Adding to the above: Trump’s comments follow U.S. Senator Elissa Slotkin (D-MI) saying there were "rumors that Trump is planning to allow Chinese cars to be sold in the U.S., as part of a larger deal he’s putting together."
Trump called Slotkin's statement a "total phony rumor," saying that he has kept Chinese vehicles out of the U.S., while also expressing openness to Chinese automakers manufacturing vehicles domestically.
Slotkin is pressing to get the Connected Vehicle Security Act passed, a bipartisan bill she co-sponsored with Senator Bernie Moreno (R-OH) that could bar Chinese vehicles from the U.S.
Slotkin is one of several policymakers, including Democrats and Republicans, who have been pushing to permanently ban Chinese vehicles from the U.S. before Chinese President Xi Jinping is scheduled to visit Washington.
The Alliance for Automotive Innovation, which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis and other auto companies, is pushing Congress to ban Chinese connected vehicles, hardware and software before the end of the year.
What they’re saying: "Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world," the group's CEO, John Bozzella, said in a letter to congressional leaders, per Reuters.
Bottom line: Trump’s openness to Chinese automakers building vehicles in the U.S. adds another layer of uncertainty to a rapidly evolving policy debate, with the eventual outcome potentially determining whether dealers face a new wave of competitors or Chinese brands remain effectively shut out of the American market.
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