President Trump visited Detroit, Michigan, on Tuesday, in the heart of the American auto industry.
His talks were far-ranging, and his message to executives and investors was similar to past statements: He wants car companies to build in America, even if they are Chinese.
“Let China come in,” said Trump at one point, a statement that might raise eyebrows for American auto executives. China has low-cost sources of parts and labor, and its BYD is now the largest seller of all-electric cars globally, topping Tesla for the first time in 2025.
But the president isn’t considering reducing tariffs on Chinese-imported cars, which are currently 100%. So Chinese car companies would need to build plants, develop dealer networks, and create supply chains. It would take years. Still, the threat of new competition could give investors in current U.S. car producers an uneasy feeling in their stomachs.
The stocks didn’t react much to Tuesday’s talks. Ford Motor stock closed down 0.3%, while the S&P 500 and Dow Jones Industrial Average fell 0.2% and 0.8%, respectively. GM shares gained 0.4%, while Stellantis shares fell 3.4%.
Coming into Tuesday trading, that group was up an average of 32% over the past 12 months. Early 2025 fears that tariffs would wipe out industry profits proved overdone. Profitability declined in 2025 relative to 2024, but results were better than feared. GM, for instance, is expected to generate $12.7 billion in 2025 operating profit, down from almost $15 billion earned in 2024.
