Automakers urge Trump to bar Chinese automakers in U.S.

The American automotive industry wants President Donald Trump to maintain policies that make it difficult for Chinese automakers to operate in the U.S. — or even ban them altogether.

In a letter to Trump dated Thursday and viewed by CNBC, groups representing major facets of the U.S. automotive industry — from franchised dealers and suppliers to domestic and foreign automakers — urged the president to “maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles inside the U.S.”

“The automotive sector is foundational to our advanced manufacturing and defense base, with the capacity and workforce to respond during a national emergency. Once that base is hollowed out, it can’t be rebuilt overnight,” the letter reads.

The letter comes ahead of Trump’s expected visit next week with Chinese President Xi Jinping in Washington, as well as Trump last week saying he would permit Chinese automakers to move manufacturing to the U.S.

“If China wanted to come in and open a plant to build their cars here, I’d be OK with it,” Trump said Sept. 11 on Fox News’ “The Ingraham Angle.” 

The letter argues that allowing Chinese automakers to manufacture in the U.S. would “undermine fair competition and jeopardize the progress” the administration has made in preventing “Chinese dominance in key industries.” Chinese automakers are heavily subsidized by their government and are rapidly expanding outside of China to other countries.

The letter is the latest in a string of messages from the automotive industry to the Trump administration, but this time represented a more unified coalition.

It was signed by leaders of six trade associations that represent every major automaker operating in the U.S., including Tesla and foreign automakers, as well as the nation’s roughly 17,000 franchised dealers.