House Bill to Ban Chinese Cars Introduced; Auto Coalition Urges Support for USMCA
This week, Reps. John Moolenaar (R-MI) and Debbie Dingell (D-MI) introduced bipartisan legislation in the House that would effectively ban the importation, manufacture, or sale of Chinese vehicles, as well as vehicles produced by other foreign adversaries, in the U.S. The measure is a companion to the Connected Vehicle Security Act, introduced recently by Sens. Bernie Moreno (R-OH) and Elissa Slotkin (D-MI). Chinese vehicles already face significant barriers to entering the U.S. market, including massive tariffs and restrictions implemented during the Biden Administration that effectively barred nearly all Chinese automakers from selling passenger vehicles in the U.S. The proposed legislation would expand and codify those existing restrictions into federal law.
The House bill reflects growing bipartisan concern in Congress over the potential entry of Chinese car companies into the U.S. market. Last week, Reps. Mike Kelly (R-PA) and Gus Bilirakis (R-FL) led a letter signed by more than 60 House Republicans urging the administration to reject any policy that would permit Chinese automotive or battery companies to establish manufacturing operations in the United States. More than 70 House Democrats and three Senate Democrats have also sent separate letters to the administration in recent weeks. President Trump was in China this week meeting with President Xi, and though it remains unclear whether the auto industry was part of the discussions, Treasury Secretary Scott Bessent indicated the U.S. and China were hoping to create a create a “Board of Investment” that would help determine “nonstrategic, nonsensitive “areas where it would be possible for China to invest in the U.S.
USMCA
A coalition of major U.S. auto industry organizations, including AIADA, sent a letter last week urging the Trump Administration to renew the U.S.-Mexico-Canada Agreement (USMCA) in order to maintain North America’s competitiveness in global auto manufacturing, and prevent regulatory complexity and increased costs. The push comes as the U.S., Mexico, and Canada undertake the agreement’s scheduled review process to determine whether it should be extended. The U.S. and Mexico are expected to begin the first formal negotiating round the week of May 25 in Mexico City. No formal talks with Canada have been announced.
EPA
The Environmental Protection Agency (EPA) proposed a delay in enforcement of a regulation requiring significant cuts in air pollution from light- and medium-duty vehicles for two years until the 2029 model year. The EPA estimated that delaying former President Joe Biden’s anti-pollution rule would save automakers $1.7 billion.
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Quotes of the Week
“Competition is healthy, but it has to be fair, and it has to support and protect a system that impacts millions of American jobs. The stakes here aren’t just about what we sell on our lots, they’re about the future of our industry and the national security of our country.”
-Mike Darrow, Chairman, AIADA (www.aiada.org)
“The American auto industry is vital for jobs, national security, and the future of America’s manufacturing base. China cheats in every industry, and in autos it is overproducing vehicles and components, and selling them for cheap in hopes they will put our companies out of business.”
-Representative John Moolenaar (R-MI) (www.msn.com)
ICYMI
In case you missed it, AIADA Chairman Mike Darrow is out with his latest blog, Chinese Automakers are Knocking. Will the U.S. Let Them In?
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Great Lakes Subaru in Findlay, OH donated 50 trees to the University of Findlay for the school’s annual Arbor Day celebration. (h/t Ohio Automobile Dealers Association)
We want to hear more about how you are supporting your local community – contact us on X @AIADA_News and use the hashtag #DealersDoGood.