President Donald Trump unveiled his “America First Trade Policy” in January 2025, which ignited a global trade war with China and other nations. A year later, he indicated he may “let China come in” to build and sell its vehicles in the U.S.
If current restrictions ― agreed by both the Biden and Trump Administrations ― on Chinese vehicles entering our market were to be lifted, these vehicles would likely quickly gain considerable market share as they have done in Europe, South America and other markets. It could devastate the U.S. automotive supply industry and employment base.
For over two decades, China has been cunningly building its automotive market with vast state subsidies, uncompetitive labor practices and the monopolization of raw materials and refining capacity, to unfairly dominate the global market, not compete in it. Chinese EVs now account for 62% of all EV sales worldwide, and overall vehicle production has surged by 500% since 2004.
The Chinese have strategically created and leveraged government-controlled practices that have yielded an unfair playing field. The globe is seeing this dynamic play out in real time. Unlike America’s European, Japanese and Korean trading partners, China has entered the global automotive market with unprecedented government support and subsidies. Its government policies have led to significant over production, which results in Chinese-made vehicles being “dumped” at below market prices across the globe — we must not allow that here.
There is also little doubt that Chinese-built and software-infused vehicles pose a national security threat to America. As U.S. Sen. Elissa Slotkin has argued, Chinese vehicles on our roadways could operate as a “driving surveillance package” of Americans.
Thankfully there is a growing, bipartisan coalition in Congress that recognizes the threats these vehicles would pose if they were allowed to enter our market. U.S.
Slotkin and U.S. Sen. Bernie Moreno, R-Ohio, have introduced legislation to establish a ban on Chinese vehicles coming to the U.S., a move the Detroit Regional Chamber, the third largest chamber in the nation, and our statewide automotive unit, MichAuto, strongly support.
The strength of China’s auto industry underscores the need for a unified North American trading bloc — empowered by a stronger United States-Mexico-Canada Agreement (USMCA). A unified and cooperative North American trifecta of automotive powerhouses can better compete with China and their unfair trade practices than any one nation alone. It is in America’s best interests, and certainly the auto industry’s best interests, to see an easing of tensions with Michigan’s two largest trade partners, Canada and Mexico.
When it comes to the future of the U.S. automotive industry and its critical contribution to innovation, manufacturing prowess, employment and national security interests, Americans need to rally around the idea that having and supporting a robust and competitive auto and next-generation mobility industry is critical.
Should America take a different road, it would devastate our economy and job base, and put the country at a completely avoidable national security risk.
Sandy K. Baruah is President and CEO of the Detroit Regional Chamber (and U.S. Assistant Secretary of Commerce under President George W. Bush) and Glenn Stevens Jr. is Executive Director of MichAuto.
This article originally appeared on The Detroit News: Lifting restrictions on Chinese cars could devastate U.S. auto industry | Opinion
Reporting by Sandy K. Baruah and Glenn Stevens Jr. / The Detroit News
USA TODAY Network via Reuters Connect
