President Donald Trump has said he would accept Chinese automakers building vehicles in the United States, but a bipartisan Senate coalition is moving to permanently bar Chinese cars, software and key components from the American market.
Trump Openness Collides With Bipartisan Senate Push
Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.) are pushing for unanimous Senate approval of the Connected Vehicle Security Act of 2026 this week as Trump meets Chinese President Xi Jinping in Washington, according to Reuters. The measure has 51 Senate supporters, while its House counterpart has more than 100 cosponsors.
"Whether you are a Democrat or Republican, no one wants Chinese cars in America," Slotkin said Wednesday. She warned that allowing Chinese automakers to establish U.S. factories would represent "the beginning of the end of auto manufacturing in the United States."
The push directly challenges Trump’s recent openness to Chinese manufacturing. He said earlier this month that he would be "okay" with Chinese companies building cars domestically if they hired American workers.
Security Rules Target Chinese Connected Vehicles
The Senate Commerce Committee unanimously advanced the Moreno-Slotkin bill in July. Senate records show lawmakers placed it on the legislative calendar for this week, positioning it for floor action. Moreno intends to seek unanimous consent, although Reuters notes that several Republican senators have raised concerns and could object.
The legislation would codify and strengthen Commerce Department rules that took effect in 2025. Those rules prohibit certain vehicle-connectivity and automated-driving hardware and software linked to China or Russia and effectively prevent Chinese automakers from selling or manufacturing connected passenger vehicles in the U.S. Commerce cited risks involving sensitive data, espionage and remote manipulation.
Automakers Back Closing Door To China
Major automakers are pushing Congress in the same direction. Six industry groups representing companies including General Motors Co. (NYSE:GM), Ford (NYSE:F), Tesla Inc. (NASDAQ:TSLA), Toyota Motor Corp. (NYSE:TM), Volkswagen AG (OTC:VWAGY), Hyundai Motor Co. Ltd. (OTC:HYMLF) and Stellantis NV (NYSE:STLA) urged Trump last Friday to keep the door "firmly shut" to Chinese automakers seeking to sell, import or manufacture vehicles in the U.S.
The groups argued Chinese investment could shift jobs away from companies that have made "generational investments in the US" rather than create additional employment.
The proposed law would codify the restrictions and limit the executive branch’s ability to exempt covered vehicles and technologies linked to countries such as China and other adversaries. It also allows the Commerce secretary to authorize otherwise prohibited transactions under strict national-security criteria and subject to congressional review.
Slotkin has pressed the issue for months, previously warning that Chinese-connected cars could collect mapping, video and location data. China, meanwhile, has opposed U.S. restrictions on its auto industry.
Photo courtesy: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
