Trump outlines terms for Chinese carmakers in US

In a Fox News interview, President Donald Trump said he would be open to Chinese automakers building cars in the United States, on the condition that they establish plants domestically and employ American workers. He cited this hiring requirement as the key factor in determining whether Chinese carmakers could gain a foothold in the US manufacturing base. Trump compared the potential approach to that of Japanese automakers, which operate factories in the United States and rely on local labor.

Trump framed the policy as a way to protect US jobs while potentially allowing new investment into the country’s auto sector. He emphasized that the primary concern is that foreign manufacturers “hire our people” and “use our people,” positioning domestic employment as the central criterion for access to the US market.

Despite signaling openness to Chinese manufacturers operating inside the United States, Trump rejected the idea of Chinese-made vehicles being imported directly into the country. He said, “We don’t allow his cars into the United States, and we never did,” referring to Chinese leader Xi Jinping, and warned that the US auto market would be “overrun” if such imports were permitted. His comments underscored a firm stance against easing current restrictions on vehicles produced in China for export to the US.

Trump also addressed the prospect of Chinese automakers producing vehicles in Mexico and then shipping them to the US market. He said he did not want that scenario to occur and described it as “un-happening,” signaling opposition to indirect entry routes that could bypass US-based production requirements. This position places limits not only on direct imports from China but also on potential regional manufacturing strategies involving neighboring countries.

Chinese vehicles are already effectively shut out of the US market due to existing trade and regulatory measures. Steep tariffs make imports from China commercially challenging, while a Commerce Department ban on national security grounds restricts connected vehicle systems originating from countries designated as adversaries, including China. These measures have combined to limit any significant presence of Chinese-built cars on US roads.

Trump’s latest remarks align with this restrictive environment, reinforcing barriers to Chinese-made vehicle imports while leaving room for controlled participation through domestic manufacturing. The conditions he outlined would require Chinese automakers to invest in US facilities and integrate into the American labor market if they seek access to US consumers.

Earlier in the year, Ford Motor Co. (F) CEO Jim Farley and Trump administration officials held preliminary, informal discussions about how a framework might be structured for Chinese automakers to build cars in the United States. Those talks explored potential approaches to allow Chinese companies to operate domestically while still providing some protection for US automakers. People familiar with the discussions indicated that no decisions were reached, leaving the policy landscape open-ended.

Trump’s comments come days or weeks ahead of a planned summit with Chinese President Xi Jinping in Washington. The interview signals the administration’s current stance as that meeting approaches, combining openness to investment tied to US jobs with continued resistance to vehicle imports and regional production strategies that circumvent domestic manufacturing. The evolving framework for Chinese participation in the US auto industry remains uncertain, with existing tariffs and security-related restrictions still in force.