Chinese Automakers Could Build Vehicles in U.S. in 5 Years

Chinese cars could be at an American dealership sooner than you think — and that’s good news for U.S. consumers.

Chinese cars shipped to America face a 100% tariff — by far the highest tariff rate for any import. (Photo: Wang Teng, Xinhua)

Chinese car companies make more vehicles than anyone else on Earth and export more as well. But high tariffs and hostile U.S.-China trade relations have kept them out of the American market, Chris Isidore and John Liu reported for CNN.

That’s likely to change, according to experts, with Chinese autos potentially hitting U.S. showrooms in the next five to 10 years.

“The ambition is there,” said Lei Xing, an independent auto analyst and former chief editor of China Automotive Review, even if companies have to build factories in the U.S. rather than ship cars from China.

He said many Chinese automakers have shown “readiness to come to the U.S., to build in the U.S.”

That would be helpful for American car buyers. Greater competition means more choices — especially for EVs — which in turn should lower prices.

China produced one-third of all cars worldwide last year, with more than 8 million exported to global markets, according to the China Association of Automobile Manufacturers. That’s up 30% compared to 2024.

China eclipsed Japan as the world’s largest vehicle exporter in 2023.

But it would also squeeze the profits and market share of car companies already selling in the U.S., likely affecting the nearly 1 million people who work for them.

Chinese cars shipped to America face a 100% tariff — by far the highest tariff rate for any import. However, President Donald Trump, a critic of most Chinese products, recently appeared welcoming of Chinese brands if they build plants in the U.S.

“If they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great. I love that,” he said in a speech last month at the Economic Club of Detroit. “Let China come in.”