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Trump open to Chinese car plants in US, rejects Mexico route

US President Donald Trump says he is fine with Chinese brands building cars inside America if they hire US workers, while ruling out Chinese cars made in Mexico for export to the US.

Published 13 Sept 2026
What it means for Nepal

US President Donald Trump says he is fine with Chinese brands building cars inside America if they hire US workers, while ruling out Chinese cars made in Mexico for export to the US.

What is actually on sale here →
Trump open to Chinese car plants in US, rejects Mexico route
Image: Volkswagen — official image

Trump’s stance on Chinese carmakers

US President Donald Trump has said he would accept Chinese automakers setting up car factories in the United States, as long as they employ American workers.

In an interview on Fox News, Trump said, "If China wanted to come in and open a plant to build their cars here, I'd be okay with that." He pointed to Japanese brands as an example of foreign carmakers that build vehicles in the US and hire local staff. His message was clear: jobs must stay in America.

Trump drew a line on production outside the US. He said he does not want Chinese brands building cars in Mexico and then exporting them to the US. He also insisted he is not allowing Chinese-made cars to enter the US market and called talk of opening the door to imports a "total phony rumor".

Political and industry pushback

Michigan Senator Elissa Slotkin recently warned that there are rumours Trump could let Chinese cars be sold in the US as part of a wider deal with China, calling it a "strategic mistake" for American manufacturing and auto jobs.

US policy today is already tough on Chinese brands. A rule brought in under the Biden administration in 2025 effectively blocks Chinese automakers from selling or producing passenger vehicles in the US, and tariffs of over 100% apply on Chinese electric vehicles. A bill in the US Senate now seeks to lock these restrictions into law.

Major carmakers, represented by the Alliance for Automotive Innovation, including General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda and Stellantis, are urging Washington to keep Chinese vehicles out of the US market. They argue that Chinese companies use heavy state subsidies to grow fast in global markets.

What this could mean for Nepali buyers

For Nepali buyers watching global EV and car trends, this signals that Chinese brands are still facing very high barriers in the US, even as Trump talks about possible local production with American workers. Any change in US policy would matter for global pricing, technology flow and competition, but for now the stance against Chinese-made imports remains firm.

Verdict: US signals openness to Chinese-built cars only if factories and jobs stay inside America, while keeping strong barriers against Chinese-made imports.

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Ajit Narayan Singh
Editor, Nepal AutoMart

Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.

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