Businesses call for blocking Chinese vehicles from US market ahead of Trump-Xi meeting

Five US automotive industry groups are urging the government to prevent Chinese vehicles from entering the domestic market, ahead of a planned meeting between Donald Trump and Xi Jinping.

According to Reuters, the five organizations that submitted the petition to the US government are the Automotive Innovation Alliance, the National Automobile Dealers Association, Autos Drive America, the American Automotive Policy Council, and the Motor & Equipment Manufacturers Association (MEMA). This petition could complicate discussions at the summit between US President Donald Trump and Chinese President Xi Jinping, which is expected to take place in late March.

The organizations expressed serious concern regarding China's ongoing efforts to dominate global automotive manufacturing and access the US market. They believe that such actions by Chinese automakers could directly threaten global competitiveness, national security, and the US automotive industry.

To counter this potential threat, the coalition of manufacturers, parts suppliers, and dealers urged the government to uphold the Department of Commerce's 2025 cybersecurity regulations. These regulations mandate that automakers avoid using software with source code written in China or by a Chinese company. Furthermore, connected vehicles manufactured by Chinese companies or entities controlled by China are prohibited, irrespective of the software's origin.

Previously, Chinese vehicles faced a 100% tariff, blocking their entry into the US market during former President Joe Biden's administration. However, with the new cybersecurity policy, Chinese vehicles now have virtually no viable path to circumvent entry restrictions.

"We call on the administration to reject any attempts by Chinese manufacturers to circumvent the rules by building factories in the US," the organizations recommended. They assert that whether Chinese vehicles are directly imported or manufactured in the US, their market entry still poses risks of market distortion and threats to the automotive industry.

This stance contrasts with earlier statements from Trump, who, earlier this year, expressed willingness to allow Chinese businesses to manufacture vehicles in the US. "If they want to come and build factories, hire you, your friends, and your neighbors, that's great," he told the Detroit Economic Club. Established in 1934, the club regularly hosts forums connecting CEOs from Fortune 100 companies and has welcomed many US Presidents.

Trump is scheduled to visit China starting 31/3. The meeting between the world's two largest economies aims to maintain stability following a challenging period marked by Trump's reciprocal tariffs and China's tightening of rare earth exports.