auto dealer in black and red 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.

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:Dealer Ops

More Dealer Ops

red, black, and yellow car in a car dealership showroom, Growth Beyond Sales text box, Auto Dealer Today logo
Dealer Opsby Lauren LawrenceJuly 31, 2026

Dealership Profits Decline

While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.

Read More →
Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →