Duffy: Chinese Cars Will Not Be Sold in America

US Transportation Secretary Sean Duffy has drawn a hard line on Chinese vehicles entering the American market, using a Ford factory visit in Ohio to make the position clear. The comments came alongside a broader push by the Trump administration to make US-built vehicles more affordable while keeping Chinese automakers locked out.

What Duffy actually said

“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” U.S. Transportation Secretary Sean Duffy said at an event with other government officials at a Ford factory in Ohio to tout efforts to make vehicles more affordable. The remarks were aimed squarely at Canada, which recently softened its stance on Chinese EVs.

Canada in 2024 imposed 100% tariffs on Chinese electric vehicles following similar U.S. duties. But its recent move to allow EVs has prompted alarm in the U.S. that it could help China get a broader foothold in North America even as Washington takes an increasingly hardline on Canadian vehicles and parts.

The Canada angle and the political line

US Trade Representative Jamieson Greer tried to defuse concerns about US automakers being squeezed out of Canada by the shift. Greer said the limited number of vehicles would not impact American car companies exporting cars to Canada. “I don’t expect that to disrupt American supply into Canada,” he said.

Senator Bernie Moreno went further, framing the issue as non-negotiable and staking out a position that leaves no room for Chinese-brand vehicles on US roads.

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Why this matters for the auto trade

Chinese automakers have not sold homegrown vehicles in the US, and layered tariffs plus a Biden-era connected-vehicle rule already made entry effectively impossible. Duffy’s comments signal the current administration intends to keep the wall up, protecting Detroit from what one trade group previously described as “an extinction-level event” for the U.S. auto industry, which likely could not compete on price.

At the same time, there have been quiet discussions about a different route in: joint ventures. The idea discussed by Ford Chief Executive Officer Jim Farley and Trump cabinet members last month involved Chinese carmakers partnering with U.S. companies through joint ventures in which the American company holds a controlling stake. The ventures would be structured so that both the Chinese and U.S. partners would share profits and technology in the JV.

The supply chain reality

Even with Chinese cars locked out, Duffy has acknowledged the industry cannot fully decouple. He has pointed to China’s grip on critical minerals as a persistent problem for any vehicle sold in the US.

“China loves the EV push because they control 90% of critical minerals. They have a corner on the market. Every car that’s going to be sold is going to have Chinese parts in it, and Chinese processed critical minerals,” Duffy said in earlier comments on fuel standards.

Options market and stocks to watch

Watch for reaction across the US auto complex and the EV supply chain as the policy stance hardens:

F: Ford hosted the event and is central to the affordability push, watch for flow around any JV headlines or CAFE-related updates.

GM: A direct beneficiary of continued Chinese exclusion from the US market, watch for options positioning tied to tariff and EV policy news.

TSLA: US EV leader with the most to gain from a walled-off domestic market, watch for reaction to any softening or hardening of the stance.

STLA: Stellantis has exposure to both US production and cross-border trade with Canada and Mexico, watch for headline sensitivity.

LI: A proxy for Chinese EV sentiment even without US sales, watch for reaction to any escalation in rhetoric. See more market news here.

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