September 9, 2026 - Potentially Confusing Messages On Chinese Vehicles

This is the Telemetry Transportation Daily for September 9, 2026, and I'm Sam Abuelsamid, Vice President of Market Research for Telemetry. 

The messaging from Washington on Chinese vehicles is getting increasingly confusing, although there does seem to be consensus on at least one aspect. No one seems to want to let Chinese-built vehicles within US borders. In Congress, Senators Elisa Slotkin and Bernie Moreno are pushing the Connected Vehicle Security Act, which would put an outright ban on importation, resale, or use of vehicles, software, and parts from companies in adversary countries, including China, North Korea, Russia, or Iran. As written, the bill would ban these vehicles and parts even if they aren't produced in those countries, but they are based there. It would also ban vehicles and parts from any company that is more than 15% owned by entities in those countries, which includes Mercedes-Benz, which is 20% owned by BAIC and Geely founder Li Shufu. 

Last week, transportation secretary Sean Duffy and the president also took aim at Ford for importing the Lincoln Corsair and Nautilus despite the automaker already announcing that production of those vehicles would move to the U.S. by 2030. They also criticized Ford for licensing battery technology from CATL. 

Meanwhile, Slotkin is criticizing Trump for a reported plan that would allow in Chinese vehicles if they are produced in the U.S. Trump has an upcoming meeting with Washington with China's President Xi that could potentially open the door to Chinese companies building vehicles here. If Congress passes the Slotkin-Moreno bill as it is, that could directly conflict with any plans for Chinese factories in the U.S., as it also bans vehicles designed by Chinese companies. If Trump does reach an agreement with Xi for US production, he may find himself having to veto the bill if it's passed by Congress, although that veto could be overridden as there appears to be significant support for banning the Chinese from both parties, even if it were to result in more US jobs. 

If Chinese manufacturers were allowed to produce vehicles in the U.S., it would likely have a major negative impact on domestic manufacturers, including Tesla, Ford, General Motors, and Stellantis. In fact, Tesla could be hit the hardest as Chinese companies are likely to focus on electrified vehicles, and they would likely be much lower cost and have stronger appeal to Tesla customers. 

Thanks for listening.