(The Center Square) – U.S. Rep. Haley Stevens has proposed a No Chinese Cars Act in an effort to bolster the Michigan auto industry.
“For too long, the CCP has been rigging the market, undermining Michigan’s auto industry, and cheating the system,” said Stevens, D-Mich. “Now, they’re trying to cheat the system again by moving production to countries like Mexico to dodge tariffs and undercut American automakers. Not anymore.”
According to Stevens, Chinese manufacturing continues to threaten U.S. manufacturing jobs, especially in Michigan.
“My No Chinese Cars Act will force China to finally play by the rules to lower costs and bring Michigan manufacturing jobs back to Michigan,” she said.
While many automakers do have factories in China, a surprisingly small number of the vehicles built in those factories are actually sold in America.
According to one report, Chinese-manufactured cars made up only 0.4% of the cars sold in America in 2024. Cars manufactured in the U.S. accounted for 64%, followed by Mexico at 14%.
That means of the 16 million cars sold in the U.S. in 2024, only 56,800 were made in China.
The Trump administration has levied a number of tariffs on China and the foreign-made auto industry, including the current 25% tariff on imported cars and parts.
Yet, this has minimal impact on Chinese car manufacturing, as such a small percentage are exported to the U.S.
“The U.S. is imposing severe restrictions on Chinese-made vehicles, despite the marginal role the country plays in America’s auto industry,” said Felipe Munoz, global analyst at JATO Dynamics, which released the above report.
Still, American politicians remain concerned about the impacts of Chinese car manufacturing. One concern is that it could begin to take over the U.S. market if unchecked.
“Right now, the CCP is engaged in unfair trade practices that threaten the American auto industry and the livelihoods of Michigan auto workers,” says a release from Stevens’ office. “Unfair subsidies and low wages at Chinese firms undermine American companies and Michigan jobs. We’ve already seen how Chinese car companies like BYD have taken over the European market and the threat they pose to the American market.”
This legislation from Stevens in the U.S. House comes on the heels of similar legislation from U.S. Senator Elissa Slotkin, also a Democrat from Michigan.
“I will lay down on the border to keep Chinese vehicles from entering the U.S. market,” said Slotkin in a statement on the legislation in April. “This is my first bill I’m introducing in the Senate, and it’s for a reason.”
Both Slotkin’s and Stevens’ legislation is notable as it bucks the trend of Democrats opposing trade tariffs implemented by President Donald Trump.
Stevens’ bill would grant the United States Trade Representative the authority to expand existing tariffs on Chinese auto exports to autos arriving in the United States from other countries if those autos:
• Are produced by a firm from a country subject to existing tariffs.
• Or are produced by a firm from China, Russia, Iran, or North Korea.
This would prevent China from outsourcing its manufacturing to avoid tariffs.
MichAuto has announced its support for the No Chinese Cars Act.
“This bill would establish important new safeguards against an influx of Chinese vehicles produced outside the People’s Republic of China, which would pose serious threats to America’s automotive industry and U.S. national security,” said MichAuto Executive Director Glenn Stevens Jr. “We applaud Rep. Stevens’ work on this bill and look forward to working with her and the rest of Michigan’s federal delegation, as the industry seeks to create greater protections for domestic auto jobs and the nation’s industrial competitiveness.”
