- One U.S. senator wants a tougher Chinese EV ban as Canada and Mexico move the other way.
- Canada has reopened the door to Chinese EVs, even if only in limited numbers.
- Mexico is becoming a real foothold for Chinese brands with bigger ambitions.
A Republican congressman wants a tougher crackdown on Chinese cars, calling them “a cancer” and promising legislation that would widen America’s effective ban. Senator Bernie Moreno, Republican of Ohio, said he would introduce new legislation in April to not just block Chinese car imports, but also target software, components, and industry tie-ups.
The proposal would ensure “there’s never a scenario where a Chinese automobile will enter our market, that’s hardware, that’s software, that’s partnerships,” Moreno said at an Automotive Forum event on Tuesday, according to Reuters.
He said he hopes Latin America, Europe, Mexico, and Canada adopt similar rules. “We’re going to prevent the cancer from coming into our market, and we’re going to need the other countries to do chemotherapy,” the senator said, per Reuters.
Tariffs of over 100%, originating under the Biden administration, have mostly kept Chinese-built vehicles out of the U.S. Add onto that restrictions on Chinese-made connectivity and automated driving technology, and it’s already very hard to sell a Chinese-built car in the U.S.
Still, Chinese automakers have the U.S., the world’s second-biggest car market after their home country, in their sights. Geely last year said it expects to announce a broader U.S. entry in the next 2-3 years. It already sells its Polestar and Volvo brands in America, but plans to bring over more of its homegrown Chinese brands. Many Americans are open to Chinese cars, which have earned a reputation for value and quality even among U.S. auto executives.
Moreno wants to take things a step further by eliminating the possibility of joint ventures between Chinese and Western manufacturers. It seems to contradict President Trump’s own declaration last year to “let China come in,” as long as its companies build cars in the U.S. with American workers.
America’s neighbors are more open to Chinese imports, however.
Canada slashed its own 100% tariff and replacing it with a quota system. Under the new rule, which entered effect in March, Canada will allow up to 49,000 China-made cars to be imported into the country annually, with the tariff dropping to just 6.1%. The yearly quota could rise to 70,000 units within five years.
Chinese automakers don’t just see Mexico as a potential market but also as a manufacturing and export base. Chinese-made vehicles now make up 20% of Mexico’s auto market, according to industry groups in the country.
Mexico is no longer just a place where Chinese automakers dump a few exports and see what sticks. It is becoming a more serious regional beachhead. Canada may be limiting the number of Chinese EVs it lets in, but it is still doing something the U.S. refuses to do: opening the door at all. That alone shows how much the two once close neighbors are diverging on a matter that the U.S. argues is a national security concern.
