Chinese electric vehicle makers are theoretically in a position to enter the U.S. market due to their extremely low costs. BYD Companies (BYDDF) (BYDDY) have engineered vehicles so cheap that, even with harsh U.S. tariffs on Chinese autos, some models could theoretically nearly double in price and still undercut many Western rivals. Surprisingly, President Donald Trump has publicly signaled openness to Chinese EVs “coming in” during his visit to the Detroit Auto Show, despite the tariff backdrop and political concerns over Chinese vehicles.
A major focus within the industry is if there is a place in the sub-$20,000 class for Chinese EVs following the expiration of the EV tax credit, which has made models from Tesla (TSLA), Rivian Automotive (RIVN), Lucid Group (LCID), and some European, Korean, and Japanese automakers pricier on a net basis. A key component for the door cracking for Chinese EVs in the U.S. is the possibility of building vehicles in North America, which could help the companies avoid tariffs and cool political opposition. In that regard, recent reports indicate that Geely Automobiles (GELYF) (GELHY) is considering U.S. production. At CES 2026, Geely’s (GELYF) (GELHY) head of global communications said the company expects to announce its U.S. strategy within 24 to 36 months and is evaluating when and where to enter the U.S. market. Geely has explicitly floated using Volvo’s (VLVCY) Ridgeville, South Carolina plant (which already builds the Volvo EX90, XC60, and Polestar 3) as a natural option for local production to get around tariffs.