The China Passenger Car Association (CAAM) recently stated that the U.S. government’s high tariff policy on automobiles would have a limited impact on Chinese-made vehicles. This assessment is based on China’s low export volume to the U.S. and the minimal presence of Chinese automotive brands in the American market.
In 2024, China’s auto exports to the U.S. totaled 116,138 units, representing 1.81% of its total vehicle exports. CAAM highlighted that Chinese brands have stronger growth potential in markets beyond the U.S., particularly in regions connected to the Belt and Road Initiative and emerging markets in the Southern Hemisphere.
CAAM emphasized that expanding the availability of small electric vehicles (EVs) is crucial, given the poor infrastructure in these regions. They also forecast potential increases in gasoline vehicle exports, and plug-in hybrid electric vehicles (PHEVs) will offer significant cost efficiency and energy savings opportunities.
In contrast, additional U.S. tariffs are expected to impact European, Japanese, and Korean brands significantly. Huatai Securities estimates that the 25% tariff imposed by the U.S. could reduce the exports of approximately 270,000 Japanese cars, 200,000 Korean cars, and 160,000 German cars in 2025.
Ironically, analysts suggest that the U.S.’s protectionist stance could create opportunities for Chinese automakers to expand into overseas markets. CAAM noted that trade conflicts could encourage Chinese companies to strengthen cooperation with regions such as the European Union and Southeast Asia.
Recently, China and Europe resumed price negotiations following disputes over EV subsidies and agreed to foster a favorable environment for investment and industrial cooperation between both parties.
CAAM added that localized Chinese products are increasingly welcomed in countries with underdeveloped automotive industries, creating more opportunities for Chinese brands to penetrate foreign markets.
