US auto groups ask Trump to keep Chinese carmakers out before the Xi summit

US auto industry groups urged President Donald Trump to keep Chinese automakers out of the American market ahead of his meeting with Chinese leader Xi Jinping^1,6. In a letter to Trump, the groups argued that keeping China out of the US auto market is crucial to maintaining fair competition⁴. Copies of the letter went to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer⁷.

The Wall Street Journal reported that the automakers asked Trump not to allow Chinese cars into the country ahead of the summit, and noted that the brand Polestar is majority Chinese-owned². Yahoo Finance reported that the summit next week could include a role for the Chinese electric-vehicle group BYD⁵. Detroit’s own trade press carried the appeal under the same framing, that the industry wants Chinese vehicles kept out before the visit^3,4.

Why it matters to investors

The barrier the letter defends is unusually high. Washington maintains tariffs of more than 100% on Chinese electric vehicles, and Congress is considering further legislation on the question¹. Any softening at the summit would therefore be a change of regime rather than a change of rate.

The scale of the exposure is set out in the industry’s own framing. China’s share of the global auto market was less than 15% in 2020, and the country is now especially dominant in the electric-vehicle segment³. Price is the mechanism. Hyundai has warned that the United States may be next in line for a wave of cheaper Chinese electric vehicles, and the Dolphin Surf, BYD’s cheapest model, starts at £18,675 on the road in the United Kingdom⁸.

What to watch

The summit is the immediate event. The meeting between the two leaders is scheduled for next week, and the possibility that Chinese vehicle access forms part of it is what prompted the letter^5,6. The industry bodies sent their appeal days before the visit rather than after it, which places the lobbying ahead of any announcement⁷.

Three markers follow. The first is whether the tariff level itself, currently above 100%, is discussed at the summit¹. The second is the legislation Congress is weighing, which would sit alongside the tariffs rather than replace them¹. The third is whether the pressure is directed through the agencies copied on the letter, since Treasury, Commerce and the trade representative each hold separate levers over vehicle imports⁷.