US Industry Warns Trump On Chinese EVs

American automakers, suppliers, steelmakers and bipartisan lawmakers are intensifying pressure on Donald Trump ahead of his summit with Xi Jinping, warning against any agreement that could allow Chinese vehicle manufacturers broader access to the U.S. market.

The concern stems partly from Trump’s remarks earlier this year at the Detroit Economic Club, where he said it would be “great” if Chinese automakers built factories in the United States and hired American workers.

From factory workers to senior automobile executives and lawmakers are all warning that Chinese vehicles must remain out of American market, Reuters reported.

According to the Alliance for American Manufacturing, Chinese automakers produced more than 30 million vehicles in 2025, exceeding the combined output of the United States, Japan and Germany. U.S. industry groups and lawmakers are concerned that this could significantly disrupt the American auto market if trade restrictions are eased.

U.S. industry groups have since backed tariffs of up to 100% on Chinese EV imports and tighter national security restrictions on connected-vehicle technologies amid concerns over China’s expanding global EV presence.

Senator Elissa Slotkin publicly urged Trump not to “make a bad deal” that would allow Chinese-branded vehicles into American dealerships. Slotkin and Senator Bernie Moreno also introduced the “Connected Vehicle Security Act of 2026,” which would prohibit Chinese-connected vehicles, software and hardware from entering the U.S. market over national security and data-collection concerns, according to an official statement.

Trump’s China Summit with Xi Jinping

According to schedules released by the Chinese Foreign Ministry and the White House, Donald Trump is expected to arrive in Beijing on May 13 for an official welcome ceremony and an initial meeting with Chinese President Xi Jinping.

Formal bilateral talks focused on trade, technology, Taiwan and the Iran conflict are scheduled for May 14, followed by a joint business and investment forum involving senior U.S. and Chinese executives. On May 15, both sides are expected to hold additional diplomatic meetings before Trump departs Beijing.

Connected Vehicle Security Act of 2026

The proposed Connected Vehicle Security Act would codify rules originally introduced under former President Joe Biden that effectively bar Chinese vehicles from entering the American connected-car ecosystem. Reuters reported that companion legislation in the House of Representatives could go even further by restricting partnerships between U.S. firms and Chinese automotive companies.

Chinese EV Expansion Raises Alarm Across Global Markets

Reuters reported that Chinese brands doubled their share of Europe’s car market last year to 6%, with particularly strong gains in countries such as Norway, Britain, Italy and Spain.

Mexico has emerged as a major growth market for Chinese automakers, with more than 30 Chinese vehicle brands operating in the country and capturing roughly 15% of the market, according to industry data cited by Reuters. Analysts said aggressive pricing and lower production costs remain key competitive advantages driving the expansion of Chinese manufacturers across Latin American markets.

Toyota Motor Corporation executives also acknowledged growing competitive pressure from Chinese automakers in international markets. David Christ, a senior executive at Toyota North America, said “Chinese firms appear capable of pricing vehicles at levels difficult for global competitors to match without substantial state support,” as reported by Reuters.

Bloomberg and Associated Press separately reported that rising fuel prices linked to the Iran conflict have accelerated global EV demand, with Chinese manufacturers benefiting disproportionately due to their lower-cost models.

Summit Outcome Could Shape Future of US Auto Policy

Despite the growing political pressure, the Trump Administration has sent mixed signals about how far it may go in future negotiations with Beijing. U.S. Trade Representative Jamieson Greer recently said connected-car restrictions were not currently part of summit discussions, while Commerce Secretary Howard Lutnick stated “there were no plans to allow Chinese investment into the U.S. automotive sector,” according to the U.S. Department of Commerce.

Still, manufacturing groups remain concerned that Trump could act independently if he believes Chinese factory investment would help expand U.S. industrial employment. Scott Paul, president of the Alliance for American Manufacturing, told Reuters there remains “wiggle room” in Trump’s approach toward the auto sector.

According to the International Energy Agency, Chinese electric vehicles were on average 20% to 30% cheaper than comparable Western models in 2025, while China accounted for more than 60% of global EV production, reinforcing concerns among U.S. automakers about potential market disruption if import restrictions are relaxed.

For now, the auto industry’s message ahead of the Beijing summit is clear: trade negotiations with China should not come at the cost of opening America’s automotive market to Chinese electric vehicle manufacturers.