Sen. Jim Banks (R-IN) is urging United States Trade Representative (USTR) Jamieson Greer to block China from infiltrating the U.S. auto industry by using Mexico and Canada to ship to the U.S. tariff-free, Breitbart News exclusively learned.
In a letter to Greer ahead of next week’s U.S.-Mexico bilateral United States-Mexico-Canada Agreement (USMCA) meetings, Banks asked Greer to “prioritize strengthened guardrails that protect American automakers from China’s efforts to gain market share within the North American auto industry.”
“The Chinese Communist Party (CCP) has Canadian markets with subsidized autos, and displace American workers in the process. A strong auto manufacturing sector is the beating heart of America’s industrial base, and it depends on a North American trading block that is free from market manipulation by foreign adversaries,” Banks wrote in the letter obtained by Breitbart News, asking Greer to “deploy strong leverage in USMCA negotiations to strengthen this trade deal’s guardrails and ensure Mexico and Canada adopt strong protections to prevent side doors for Chinese vehicles into the U.S. and malign greenfield investment by Chinese automakers.”
Banks said the Chinese Communist Party (CCP) made it clear that it intends to dominate the globe in auto manufacturing and has made steps in this direction, as China stands as the largest global exporter of automobiles – “both electric and internal combustion engine (ICE) vehicles,” per Banks, who also noted that China’s vehicle exports have dramatically risen in the last several years – over 700,000 in 2019 to seven million in 2025.
“This dramatic export spike did not occur in a vacuum—it is the direct result of the CCP’s long record of anti-competitive practices,” Banks wrote.
He explained that President Trump took initiative, recognizing this threat and therefore “wisely imposed tariffs on Chinese vehicles in 2018.” However, China is now attempting to find a workaround to enter the U.S. auto market by building Chinese auto factories in countries that have “favorable trade deals with the United States or negotiating direct shipments of Chinese autos to those countries.”
“Mexico and Canada lie at the heart of this strategy,” Banks warned, noting that China has made progress infiltrating the market in Mexico, and that should be taken seriously.
“One in five cars sold in Mexico is now a Chinese auto. Chinese carmakers have built at least 12 new manufacturing facilities in Mexico since 2019, and even more auto
component facilities.,” the letter reads in part.
Meanwhile, China has used a different strategy in Canada:
While Canada retains notable guardrails to block malicious direct investment from foreign adversaries. China has held hostage Canadian agriculture interests to negotiate direct shipments of Chinese EVs into Canada at lower tariffs, which were previously aligned with the U.S.. As announced by Prime Minister Carney in January 2026, the country now intends to allow 49,000 Chinese EVs to be imported into Canada each year at a heavily discounted tariff rate. This represents more than one quarter of annual EV sales in Canada and it will greatly damage American automakers’ market share in the country, harming their prospects to grow and invest in new technologies. Securing a commitment from Prime Minister Carney to restore Canada’s high trade protection against Chinese EVs should be a top priority.
American automakers, he concluded, should be put first, as they “deliver indispensable products to our families” and “build and preserve ecosystems of technology innovation and a skilled manufacturing workforce that strengthens our nation and has cascading benefits through many corners of the U.S. economy.”
“We urge you to continue prioritizing such measures during the first official round of bilateral USMCA negotiations next week,” the letter concludes.
It is signed by not only Banks but Sens. Tommy Tuberville (R-AL), Pete Ricketts (R-NE), Ted Budd (R-NC), Marsha Blackburn (R-TN), Rick Scott (R-FL), Bernie Moreno (R-OH), and Katie Boyd Britt (R-AL).
USMCA negotiations begin on Monday.
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