Trump Says Chinese Cars Are Fine If Made in the U.S.; Automakers Demand a 'Lockout'

[Financial News] U.S. President Donald Trump said he could allow Chinese automakers to produce vehicles in the United States. He indicated that the United States would accept investment from Chinese companies if they build factories and hire American workers.
According to NBC News on the 11th (local time), President Trump said in an interview with Fox News' The Ingraham Angle, "If China wants to come into the United States, open a factory and produce automobiles, I am fine with that." The remarks came two weeks before the U.S.-China summit scheduled to take place in Washington.
President Trump cited Japanese automakers' local production in the United States as an example. "Japan does that too, but they hire our people," he said, emphasizing, "The most important thing is hiring Americans."
However, Trump drew a line at a model in which Chinese companies establish production bases in Mexico and export vehicles to the United States. He presented local production accompanied by investment and job creation in the United States as a condition for acceptance.
The auto industry is wary that allowing Chinese vehicles to enter the U.S. market could be discussed during negotiations between President Trump and Chinese President Xi Jinping. Chinese automakers are currently effectively barred from entering the United States. Regulations introduced by the former Biden administration early last year restrict the sale and production of passenger vehicles in the United States, while tariffs of more than 100% are imposed on electric vehicles made in China.
Automakers maintain that restrictions on Chinese vehicles should be codified into law. The Alliance for Automotive Innovation, which represents GM, Ford, Toyota, Volkswagen, Hyundai Motor, Honda and Stellantis, recently asked Congress to pass legislation banning Chinese-made vehicles from entering the U.S. market by the end of the year.
John Bozzella, chief executive officer of the Alliance for Automotive Innovation, expressed concern about Chinese companies' entry into the United States, saying, "Chinese companies are supplying vehicles equipped with connected software and hardware to markets around the world on a large scale, backed by government subsidies."
Democratic Senator Elissa Slotkin suggested that allowing Chinese vehicles to be sold in the United States could be included in U.S.-China negotiations and criticized the possibility, saying it "would be a strategic mistake."
[email protected] Choi Doo-sun Reporter