United States President Donald Trump has said he would be open to Chinese automakers establishing manufacturing plants in America, provided the factories employ American workers, a position that has immediately intensified debate over the future of the U.S. automobile industry and Washington’s restrictions on Chinese vehicles.

Trump made the remarks in an interview with Fox News, arguing that foreign manufacturers should be welcomed when their investments create jobs for Americans. He pointed to Japanese automakers already manufacturing vehicles in the United States as an example of the model he would accept.

“If China wanted to come in and open a plant to build their cars here, I’d be okay with that,” Trump said, while stressing that American workers would have to benefit from the investment.

The President, however, drew a distinction between Chinese companies manufacturing inside the United States and producing vehicles in neighbouring Mexico for export into the American market. He said he remained opposed to Chinese automakers using Mexico as a manufacturing base to sell vehicles into the U.S.

The remarks come amid mounting pressure from major U.S. automakers and lawmakers seeking tougher restrictions on Chinese vehicles. Earlier this month, the Alliance for Automotive Innovation urged congressional leaders to enact a permanent prohibition on the sale, import and manufacture of Chinese connected vehicles, as well as high-risk Chinese vehicle software and hardware.

The Alliance, whose members include General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda and Stellantis, argues that Chinese automakers benefit from extensive state subsidies and that connected vehicles could also create national-security concerns because of the volume of consumer and vehicle data they collect.

Alliance President and CEO John Bozzella warned Congress that China was rapidly gaining automotive market share in Europe, Australia, Southeast Asia, Mexico and South America, and called for current U.S. restrictions to be written permanently into federal law.

Trump’s position also drew criticism from Democratic Michigan Senator Elissa Slotkin, who had earlier warned that opening the American market to Chinese automakers would be a strategic mistake. Trump initially dismissed reports that he intended to allow Chinese vehicles into the country as a “phony rumor,” but subsequently clarified that he could support Chinese-owned factories operating on U.S. soil and employing Americans.

Chinese vehicles already face significant barriers in the United States, including steep tariffs and federal restrictions targeting connected-vehicle technology linked to China. The Commerce Department’s connected-vehicle rules, finalised in January 2025, were introduced on national-security grounds and restrict certain Chinese- and Russian-linked vehicle software and hardware.

The latest comments therefore expose a potentially important distinction in Trump’s approach: maintaining barriers against Chinese-built vehicles entering the American market while leaving open the possibility that Chinese companies could manufacture directly inside the United States if their investment creates American jobs.

The issue is likely to remain politically contentious as Congress considers legislation that would make restrictions on Chinese vehicles permanent and as Washington continues to balance manufacturing jobs, competition and national-security concerns in its economic relationship with Beijing.

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