President Donald Trump signaled potential support for Chinese automakers to build factories in the U.S., provided they hire American workers. The comments came during a speech in Detroit, sparking speculation about a major shift in U.S. auto policy.

Currently, the U.S. remains largely closed to Chinese auto competition due to high tariffs and no local manufacturing presence. Analysts at Wolfe Research suggest this could change if Trump acts on his remarks, opening the door to BYD, Geely, and others.

Wolfe warned that such a move would pose a significant threat to U.S. automakers, citing Europe as a cautionary example. There, Chinese brands have more than doubled their market share since 2023, aided by cost advantages and new local production facilities.

While no firm plans are in place, Trump’s remarks align with recent signals from Ontario Premier Doug Ford. Any expansion by Chinese OEMs into North America could reshape the region’s auto dynamics within two years.