Chery weighs U.S. market entry as policy and tariff barriers persist

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Chery weighs U.S. entry

Highlights

Chery International president Zhang Guibing states U.S. market entry depends on regulatory conditions, offering no specific timetable as 100% tariffs persist.
Chery and other Chinese automakers prioritize expansion in Europe, Latin America, the Middle East, and Southeast Asia instead of immediate U.S. entry due to market obstacles.
Chery global communication chief Ash Sutcliff signals a potential U.S. expansion announcement could come within the next 24 to 36 months.

U.S. entry plan hinges on timing and regulation

As reported by Reuters, Zhang Guibing, president of Chery International, says the company hopes to enter the U.S. market when conditions become suitable, though he does not provide a timetable.

Speaking at Chery's headquarters in Wuhu on Wednesday, Zhang says any decision depends both on the carmaker's readiness and on industry policies in China and the United States. His comments come as U.S. President Donald Trump signals he could be open to Chinese automakers if they build vehicles in the United States, even as U.S. auto industry groups and lawmakers urge him not to allow broader access for Chinese cars.

The U.S. has long been an attractive but difficult target for Chinese automakers. It imposes 100% tariffs on Chinese-made electric vehicles, while restrictions on Chinese connected-car technology and rising scrutiny from lawmakers add further obstacles.

Chinese automakers pursue other expansion routes

Chery has not yet added the United States to its export markets and, like other Chinese carmakers, is focusing instead on Europe, Latin America, the Middle East and Southeast Asia, where demand for lower-cost Chinese vehicles is growing.

Chinese automakers are also increasingly partnering with established manufacturers to use underutilised factories in Europe. Some Chinese car companies maintain research, development and design operations in the United States, while some Chinese-linked businesses have established or expanded manufacturing there through non-Chinese brands.

Geely-owned Volvo Cars operates a plant in South Carolina. At January's Consumer Electronics Show in Las Vegas, Chery global communication chief Ash Sutcliff says the company is eyeing U.S. expansion and could make an announcement within the next 24 to 36 months.

Other Chinese automakers are taking varied approaches to the U.S. market. BYD has a U.S. presence through electric bus operations but says it does not plan to sell passenger cars there, while Xiaomi says it has no plan to enter the market. BYD, Chery, Geely and Great Wall Motor have also explored or expanded operations in Mexico and Latin America, regions viewed as possible springboards or alternatives for North American access.

In our earlier article on Jay Powell’s final transition at the Federal Reserve, we examined how his tenure ended amid renewed political pressure and a public dispute over the central bank’s independence ahead of Kevin Warsh taking over. We also recapped the Fed’s mixed inflation record and noted that policymakers have been signaling rates could stay higher for longer as tariff-related price pressures persist.

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