Trump signals openness to Chinese auto manufacturing in the US as Xi prepares for talks with Modi at the Brics summit in New Delhi
US President Donald Trump has said he would be open to Chinese automakers setting up car plants in the United States, a significant shift in tone as Chinese President Xi Jinping prepares to visit India for the Brics summit.
Trump said Chinese companies could build cars in the US as long as they employ American workers. He made the remarks in an interview with Fox News programme The Ingraham Angle.
“If China wanted to come in and open a plant to build their cars here, I’d be okay with that,” Trump said, pointing to Japanese automakers as an example of foreign companies that manufacture vehicles in the US and employ American workers.
Trump, however, said he did not want Chinese automakers to manufacture vehicles in Mexico and then export them to the US.
The comments come as Washington maintains tight restrictions on Chinese vehicles. A regulation introduced by the Joe Biden administration in early 2025 effectively prevents Chinese automakers from selling or building passenger vehicles in the US. Washington also maintains tariffs of more than 100 per cent on Chinese electric vehicles.
Chinese cars face US opposition
Trump’s comments have come despite opposition from US lawmakers and major automakers.
More from BusinessThe Alliance for Automotive Innovation, which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda and Stellantis, has urged Congress to pass legislation permanently blocking Chinese vehicles from the US market.
The group has argued that Chinese automakers are exporting subsidised vehicles with connected software and hardware to markets around the world. It has called for Congress to act by the end of the year.
Trump is also expected to meet Xi in Washington later this month. The issue of Chinese vehicles could therefore become part of a wider discussion on trade and market access between the world’s two largest economies.
Trump dismissed recent claims that he was preparing to allow Chinese vehicles to be sold in the US as a “total phony rumor”, saying his administration had kept Chinese vehicles out of the American market.
Xi set to arrive in India for Brics summit
Trump’s remarks come as Xi is set to arrive in New Delhi for the Brics summit, his first visit to India in seven years.
India is hosting the Brics leaders’ summit in New Delhi, with trade, investment, payments, supply chains and economic cooperation among the key issues for the expanded grouping. Xi is expected to hold talks with Prime Minister Narendra Modi on the sidelines of the summit.
The timing puts China’s expanding automotive industry in focus. China has become a major force in electric and smart vehicles and is seeking to expand its presence in overseas markets. Its industry ministry this week unveiled a roadmap targeting large-scale deployment of autonomous vehicles by 2030 and greater global influence for its auto sector.
For India, this is particularly relevant as New Delhi weighs how to attract investment and technology from China while maintaining safeguards for domestic industry.
India-China economic ties have improved in some areas, but significant restrictions and trust issues remain. Reuters reported that Chinese automakers such as BYD and Great Wall Motor have remained cautious about planned investments in India after facing greater scrutiny from New Delhi.
A broader opening for Chinese manufacturing in the US could also underline a changing global auto landscape, where Chinese companies are increasingly seeking overseas production, partnerships and access to major consumer markets.
The development is also relevant to Brics discussions on trade and supply chains. Brics finance chiefs have called for greater coordination on cross-border payments and criticised unilateral trade measures, including tariffs, ahead of the New Delhi summit.
