US Auto Groups Urge Trump to Maintain Chinese EV Import Curbs Before Xi Summit

Volkswagen lowered its 2024 operating margin forecast after a Porsche stake write-down and persistent weakness in Chinese sales, triggering a 7.5 percent share drop. General Motors shares fell 5 percent intraday while Ford and Stellantis declined 4-5 percent as sector pressure mounted. The moves coincide with industry groups warning that any US production foothold for BYD would erode margins for existing manufacturers. The letter, signed by the Alliance for Automotive Innovation, Autos Drive America, and the American Automotive Policy Council, frames Chinese market access as a direct transfer of share from US-based operations. Europe’s earlier tariff and subsidy adjustments have already exposed local assemblers to sustained Chinese volume pressure, providing the documented precedent cited by US signatories. US policy now weighs the political cost of further tariff escalation against the incentive to protect domestic employment and supplier networks before the Xi engagement. Primary records show both sides have consistently prioritized market access terms over stated climate or consumer-benefit rationales. Next steps hinge on whether the administration extends existing Section 301 measures or negotiates sector-specific quotas, with any relaxation likely conditioned on reciprocal Chinese procurement commitments.