FI showroom red and grey logo
MenuMENU
SearchSEARCH

Trump Seeks to ‘Equalize’ China Auto Tariffs

The Trump administration has threatened a 25% ‘chicken tax’ on Chinese auto imports in the wake of General Motors’ plant closures and ahead of a critical meeting with President Xi Jinping.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
November 29, 2018
Trump Seeks to ‘Equalize’ China Auto Tariffs

U.S. Trade Representative Robert Lighthizer described China’s heightened U.S. auto import tariffs as “egregious” in a statement announcing President Donald Trump ordered a review of the country’s trade policies in advance of a private meeting with President Xi Jinping.

Photo courtesy The White House

2 min to read


WASHINGTON — President Donald Trump ordered U.S. Trade Representative Robert Lighthizer to “examine all available tools to equalize the tariffs applied to automobiles” built here and sold in China, Lighthizer said in a statement Wednesday, describing China’s 25% hike on American imports as “egregious.”

“As the president has repeatedly noted, China’s aggressive, state-directed industrial policies are causing severe harm to U.S. workers and manufacturers,” Lighthizer said.

Ad Loading...

China raised its tariff on U.S.-built cars from 15% to 40% in July, days after the Trump administration raised levies on imported steel and aluminum. The current U.S. rate on cars imported from China is 27.5%. The latest figures from Autodata suggest about 71% of the cars sold by all Asian manufacturers stateside are built in North America, as are about 69% of those OEMs’ light trucks.

The light trucks category includes SUVs, which are not subject to the 25% “chicken tax” enacted against foreign manufacturers in the 1960s. Applied specifically to light trucks and work vans — and, initially, to other, nonautomotive goods — the Johnson administration levied the chicken tax in retaliation for European tariffs on American-grown poultry.

In a series of tweets Wednesday, Trump tied the Chinese tariff imbalance to General Motors’ plant closures and suggested a chicken tax on China-built vehicles was overdue. Trump is set to dine privately with President Xi Jinping on Saturday in Buenos Aires, which will host the upcoming G20 summit.

“The reason that the small truck business in the U.S. is such a go-to favorite is that, for many years, Tariffs of 25% have been put on small trucks coming into our country. It is called the ‘chicken tax,’” Trump tweeted. “If we did that with cars coming in, many more cars would be built here … and GM would not be closing their plants in Ohio, Michigan & Maryland. … Also, the countries that send us cars have taken advantage of the U.S. for decades.

“The President has great power on this issue — Because of the G.M. event, it is being studied now!” Trump added.

Topics:Showroom

Originally posted on Auto Dealer Today

More Showroom

Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →
Ad Loading...
Dodge emblem on orange vehicle
Showroomby Hannah MitchellJune 15, 2026

New Vehicles Down for Most Brands

Healthy May sales cut into inventory as automakers kept a tight reign on supply, though some brands ended the month with excess units on the ground.

Read More →
Photo of the back of an electric Mercedes
Showroomby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Orange Mitsubishi car on grass
Showroomby Lauren LawrenceJune 8, 2026

Mitsubishi Sets Growth Strategy, Structural Transformation

The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'

Read More →
Ad Loading...
inside of car, view of steering wheel with hands on it driving
Showroomby Lauren LawrenceMay 29, 2026

Affordable, Safe Cars for Teen Drivers

Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Showroomby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
exterior daytime image of Porsche North Miami dealership
Showroomby Lauren LawrenceMay 22, 2026

Holman Opens Porsche Dealership in Miami

The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.

Read More →
Ad Loading...
Outside of a Cadillac dealership.
Showroomby Lauren LawrenceMay 20, 2026

Chicago to Gain Cadillac Rooftop in 2027

The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.

Read More →