Why U.S. automakers are losing sleep over the China summit
POLITICO Forecast<forecast@politico.eu>
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By ZACK COLMAN, JORDYN DAHL, SARA SCHONHARDT and CHARLIE COOPER
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Ford vehicles lined up on the sales lot of the Metro Ford dealership on May 6, 2025 in Miami, Florida. | Joseph Raedle/Getty Images
The walls that once kept Chinese electric vehicles out of the western economies are quickly developing some major cracks.
That’s made the U.S. auto industry and lawmakers nervous that President Donald Trump’s trip to Beijing for a Thursday summit with Chinese President Xi Jinping could accelerate the entry of cheap EVs, wiping out the nascent U.S. EV sector at a time when fuel costs are soaring and rising car prices are souring public sentiment.
For now, the U.S. market is off limits to Chinese EVs due to a combination of national security regulations and a 100 percent tariff. A flurry of new legislation backed by the top auto lobbying organization and manufacturers along with bipartisan warnings from Congress to Trump to avoid deals are evidence that U.S. automakers are in a panic over the potential entry of Chinese EVs or manufacturing investment.
“They’re absolutely more than worried — they’re scared stiff,” said Michael Dunne, chief executive officer of Dunne Insights, an automotive consultancy. “Imagine if the Chinese come in with a $25,000 EV. That could catch like wildfire.”
While Cabinet officials insist protecting the auto sector is non-negotiable in the talks at this week’s summit, Trump himself has opened the door to Chinese investment.
“If they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great,” Trump told the Detroit Economic Club in January. “I love that. Let China come in, let Japan come in. They are and they’ll be building plants, but they’re using our labor.”
Trump’s proclivity for splashy trade announcements and his previous stance on the Chinese car companies could set the stage for the U.S. to lower the barriers that have so far closed the country off to their EVs. For China, there is no bigger prize than accessing the U.S. market — a goal that could come into play in Trump’s long pursuit of an elusive trade deal with the world’s second-largest economy.
That backdrop has raised anxiety in the U.S. automotive sector that customers could be drawn to the cheaper Chinese vehicles, particularly as U.S. drivers contend with gasoline prices at four-year highs and Republicans’ repeal of buyers’ incentives last year.
Automakers speaking to POLITICO expressed fears that Chinese EV brands could pose an existential threat to their business and impose security risks on American consumers. Some experts also said the entry of Chinese firms could undercut U.S. efforts to grow its EV sector — as they did in Europe, where they quickly gobbled up market share.
The U.S. firewall on Chinese EVs remains in place, however, as other countries are lowering theirs. Canada reversed protectionist trade measures earlier this year to embrace new Chinese EV imports — those first shipments landed this week. Under the terms Prime Minister Mark Carney agreed to, Canada will import enough Chinese cars to comprise 20 percent of its EV market.
In Europe, Chinese models grabbed their highest share ever late last year, putting German automakers on edge. Manufacturing investment has followed suit: On Friday, Dutch-based Stellantis announced a deal to produce electric vehicles with Chinese firm Leapmotor at two sites in Spain.
U.K. Prime Minister Keir Starmer’s Labour government has resisted tariffs, which enabled cheaper Chinese models to get a sizable foothold in the market. Chinese cars represented 4.9 percent of new car registrations in the U.K. in 2024, 9.7 percent in 2025 and 14.6 percent in the first four months of 2026, according to figures shared by the U.K. automobile industry group the Society of Motor Manufacturers and Traders.
A U.S. auto executive who was granted anonymity to discuss private conversations said three senior administration officials insisted the auto sector would not be on the negotiating table for Trump’s visit. That the U.S. industry and its boosters have rallied their Washington allies for this week’s summit is an indication that they are anxious about any unscripted dialogue between Trump and Xi.
Few automakers and analysts see Trump reversing course to allow imports to the U.S., which they say would undermine his America First trade policy to bring manufacturing back to the country. And for now, some experts say the Chinese sector may be wary of stirring up opposition that undercuts its long-term growth.
But one foreign auto executive said Trump’s penchant for dealmaking and splashy announcements was worrisome. Imports are not the biggest concern, the person said, rather, it’s the promise of investment in U.S. states that could bring jobs and, in Trump’s mind, votes.
Chinese automakers have set their sights on the U.S. BYD has invested in its own logistics with a fleet of eight container ships that can each carry up to 9,000 vehicles, making it easy to redirect exports to the U.S. as soon as the barriers crumble.
The Chinese industry’s overcapacity is largely due to ramping up of production to address the U.S. market, said Matthias Schmidt, a long-time car analyst in Europe. Meanwhile, a costly price war in China has undercut profits, following the EU move to slap duties on made-in-China electric vehicles in an effort to stop them from flooding the market.
Those dynamics are manifesting at a sensitive time in the U.S., where Trump faces worsening poll numbers in large part due to rising costs. The surge in production and availability of cheap, tech-savvy cars come at a time when Americans have less ability to afford new vehicles, making the Chinese an alluring option.
For the allies of the U.S. carmakers, though, the message to Trump is simple: “Find something else to give on,” Michigan Democratic Sen. Elissa Slotkin said. “Don’t give away the farm just to make a deal.”
Read the full version of the story here.
Colman and Schonhardt reported from Washington. Dahl reported from Brussels. Cooper reported from London.
Welcome to POLITICO Forecast. Reach out with news, tips and ideas at forecast@politico.com. Or contact tonight’s authors on X (formerly known as Twitter) @zcolman, @saraschonhardt, @Jordyn_Dahl, @CharlieCooper8.
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Kylian Mbappé controls the ball during the Spanish league football match between Real Betis and Real Madrid CF at the La Cartuja stadium in Seville on April 24, 2026. | Cristina Quicler/AFP via Getty Images
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Le Pen and Bardella’s party has long had a contentious relationship with the country’s popular national football team, writes POLITICO’s Victor Goury-Laffont.
“Far-right leaders have provoked consternation in the past by criticizing the racial makeup of the team, insinuating they are less French. In 1996, National Rally founder Jean-Marie Le Pen said that ‘it’s artificial to bring in players from abroad and call them the French national team.’
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