President Donald Trump said he would be open to Chinese automakers establishing factories inside the United States and employing American workers, even as U.S. automakers and lawmakers press for permanent restrictions on Chinese vehicles.
By yourNEWS Media Newsroom.
President Donald Trump said Friday that he would not object to Chinese automakers manufacturing vehicles inside the United States as long as the plants employ American workers, drawing a distinction between foreign companies investing domestically and Chinese-owned factories using Mexico as an export base for the U.S. market.
“If China wanted to come in and open a plant to build their cars here, I’d be okay with that,” Trump said during an interview on Fox News’ “The Ingraham Angle.”
Trump pointed to Japanese automakers as an example of foreign companies operating manufacturing facilities in the United States while creating domestic jobs.
“Japan does it, but they hire our people. The big thing is they hire our people,” Trump said.
His comments indicate a willingness to consider Chinese-owned vehicle production on American soil despite an intensifying effort by automakers and members of Congress to keep Chinese vehicles and connected-vehicle technology out of the U.S. market.
Trump made clear, however, that he opposes Chinese automakers establishing production in Mexico and then exporting those vehicles north across the U.S. border.
“I’m not knocking Chinese cars,” Trump said.
The comments come ahead of Trump’s expected meeting with Chinese President Xi Jinping in Washington in approximately two weeks. U.S. automakers have been urging the administration not to grant Chinese manufacturers access to the American vehicle market as part of negotiations with Beijing.
Michigan Democratic Sen. Elissa Slotkin raised those concerns Wednesday, saying she had heard reports that Chinese vehicle access could become part of a broader agreement.
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. That would be a strategic mistake,” Slotkin said.
Trump rejected that characterization, calling Slotkin’s statement a “total phony rumor” and saying his administration had kept Chinese vehicles out of the country.
The distinction between selling Chinese-made vehicles in the United States and allowing Chinese-owned companies to manufacture vehicles domestically could become central to the debate.
Existing federal restrictions create significant obstacles to Chinese automakers entering the American market. A regulation adopted during former President Joe Biden’s administration in early 2025 effectively prevents Chinese automakers from selling or manufacturing connected passenger vehicles in the United States because of restrictions involving Chinese-linked vehicle software and hardware. The United States also maintains tariffs exceeding 100% on Chinese electric vehicles.
The American automotive industry is pressing Congress to go further by putting a permanent statutory prohibition in place.
The Alliance for Automotive Innovation, whose membership includes General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis and other major manufacturers, recently urged House and Senate leaders to approve legislation banning the sale, importation and manufacture of Chinese connected vehicles, software and hardware before the end of the current Congress.
“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Alliance President and CEO John Bozzella said in a letter to congressional leaders.
The organization argues that Chinese automakers have rapidly expanded their presence in markets including Europe, Australia, Southeast Asia, Mexico and South America and that connected vehicles pose additional concerns because of their ability to collect, process and transmit data.
The industry group is seeking congressional action by the end of December to make restrictions on Chinese vehicles permanent rather than relying solely on regulations that a future administration could potentially change.
The dispute comes as American automakers themselves navigate an increasingly complicated relationship with China.
U.S. manufacturers have warned that Chinese automakers have become formidable global competitors, particularly in electric vehicles, batteries and lower-cost manufacturing. At the same time, some American companies maintain technology or commercial relationships with Chinese firms outside the United States as they attempt to remain competitive internationally.
Trump’s comments suggest that his principal distinction may center on where the vehicles are built and who benefits from the resulting jobs.
Under the approach he described Friday, Chinese companies producing automobiles abroad and shipping them into the United States would remain undesirable, while factories established inside the country and staffed by American workers could receive a different reception.
That position now places Trump at odds with an auto industry campaign seeking a broader prohibition that would prevent Chinese connected vehicles from being manufactured in the United States at all.
The issue is likely to receive additional scrutiny as Trump prepares to meet Xi, with automakers and lawmakers watching for any indication that restrictions on Chinese vehicle companies could become part of a wider U.S.-China agreement.
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