President Trump is considering a policy to permit Chinese automakers to build car factories within the United States to circumvent existing trade barriers. This potential shift suggests that Chinese electric vehicles will likely penetrate the US market even though a recent summit between Trump and President Xi Jinping ended without a formal agreement, according to analysts cited by Nikkei.

The move faces opposition from bipartisan senators who are attempting to fast-track a permanent ban on Chinese vehicles. Currently, foreign EVs are effectively shut out of the US by tariffs exceeding 100% and a 2025 regulation that bars Chinese-connected passenger vehicles based on data security concerns.