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Trump Signals Openness to Chinese EV Production in the United States

By Drooid · · How we work

Core Proposal and Timing

President Donald Trump told Fox News that he would consider allowing a Chinese automaker to build electric vehicles (EVs) in the United States — provided the plants employ American workers. He reiterated his refusal to permit Chinese-built cars to be imported, warning that unchecked imports would “overrun” the market. The comments came weeks before a planned summit in Washington with Chinese President Xi Jinping and follow remarks made at a January Detroit Economic Club speech in which Trump said, “let China come in.” No formal agreement has been reached; discussions earlier this year among Ford CEO Jim Farley, Trump cabinet members, and unnamed officials remain informal.

Background & Context

Chinese EV makers such as BYD Co. and Geely Automobile Holdings Ltd. have been expanding market share globally and are already present in Canada and Mexico. In the United States, steep tariffs and a Commerce Department ban—issued on national-security grounds for “connected vehicle” systems—effectively block Chinese-origin vehicles from entry. Industry leaders have expressed concern that Chinese firms could soon seek footholds in the U.S. market.

Official Statements & Responses

Trump emphasized that any Chinese manufacturing would need to “hire our people” and warned against production in Mexico intended for U.S. sale, calling such a scenario “un-happening.” He also dismissed circulating rumors that he plans to lift the import ban as a “total phony rumor,” asserting he is “the only one stopping them.”

Criticism & Opposition

U.S. Senator Elissa Slotkin (D-MI) warned that permitting Chinese cars would be a “strategic mistake” that could “irrevocably impact” the American auto industry and broader manufacturing capacity, risking jobs. Alongside Republican Senator Bernie Moreno, Slotkin introduced legislation to ban connected-vehicle technology from firms more than 15 % owned by adversarial nations, a measure backed by Ford, General Motors, and the United Auto Workers. Critics note the draft could unintentionally affect other foreign automakers, such as Mercedes-Benz Group AG, which has near-20 % Chinese ownership.

Verbatim Quotes

  • “We don’t allow his cars into the United States, and we never did,” — Donald Trump, looms US president
  • “Now, if China wanted to come in, and open a plant to build their cars here, I’d be okay with it – Japan does it – but they hire our people,” — Donald Trump, looms US president
  • “We hear rumors that Trump is planning to allow Chinese cars to be sold in the US, as part of a larger deal he’s putting together,” — Elissa Slotkin, jvs michigan senator