Donald Trump threatens to tax Chinese cars out of the US market

Former US President and current presidential candidate Donald Trump has warned cars from Chinese brands will be hit with a 100 per cent tariff – even if those vehicles are made in Mexico – if he is elected back into office.

While some media outlets have reported Mr Trump is threatening to stop all electric car sales in the US if voted in, the presidential candidate appears to have been cautioning Chinese car manufacturers their products will be uncompetitive with US-made vehicles due to the substantial tax.

"They want to do this all-electric nonsense, where the cars don't go far, they cost too much, and they're all made in China," Mr Trump told a rally in the US state of Ohio.

"China now is building a couple of massive plants, where they're going to build the cars in Mexico, and they think they're going to sell those cars into the United States with no tax at the border," he said.

"No, we're going to put a 100 per cent tariff on every single car.

"You're not going to be able to sell those cars."

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It's unclear whether the tariff will also apply to other vehicles made in Mexico by brands not owned by Chinese companies.

Mexico manufactures 21.4 per cent of all imported cars sold in the US, putting it in the number one position ahead of Japan, Canada, and South Korea.

The Audi Q5, BMW 3 Series, and multiple Chevrolet models are currently manufactured in Mexico and sold in the US, along with several other models.

In 2017, Ford cancelled plans to build a plant in Mexico after then-President Trump threatened a "big border tax", however, the company currently manufactures the Mustang Mach-E at a Mexican factory.

In May 2024, the US Government – under President Joe Biden, Mr Trump's presumed opponent in the upcoming elections – announced it would quadruple its tariff on Chinese-made electric vehicles from 25 to 100 per cent.