Key Takeaways:
More than 70 House Democrats are urging President Trump to prohibit Chinese car companies from building vehicles in the U.S., citing national security and a direct threat to American manufacturing and workers.
"We must not cede the American auto industry to a strategic competitor intent on global dominance," Democratic Rep. Debbie Dingell and more than 70 other Democratic representatives said in a letter to Trump.
The letter calls for maintaining existing tariffs on Chinese automakers and automobiles, and ensuring that no car company in China establishes manufacturing operations in the U.S. It also explicitly prohibits vehicles from Chinese-owned entities sold in Canada or Mexico from entering the U.S.
The move comes as concern over the prospect of high-tech Chinese competitors breaking into the U.S. has ratcheted up ahead of a summit next month between Trump and Chinese leader Xi Jinping. U.S. auto executives have warned about the growth of Chinese automakers for years, describing Beijing’s subsidies for the country’s carmakers as an unfair advantage.
This article is for informational purposes only and does not constitute investment advice.
