Hyundai Motor's chief executive officer warned that high tariffs and market-entry barriers should be maintained to block Chinese automakers from entering the U.S. market. He argued that because Chinese automakers are rapidly expanding their share in Europe, the United States could face a similar situation if it lowers trade barriers.
Electrek outlet CleanTechnica reported on Sept. 21 that Hyundai Motor CEO Jose Munoz (호세 무뇨스) said last week in San Jose, California that the United States should maintain tariffs and market-entry requirements on Chinese automakers. Munoz warned that if the United States does not keep protective measures at current levels, Chinese automakers could enter the U.S. market in a way similar to what has occurred in Europe.
Chinese automakers are eroding the market share and profitability of established carmakers in Europe. Munoz explained that in some markets including Italy, Spain and France, Chinese-made vehicles are 30 to 40 percent cheaper than competing models. He said price competitiveness remains even though the European Union applies trade barriers such as tariffs and minimum price undertakings on Chinese electric vehicles.
The British market was presented as a representative comparison case. Britain has not applied additional tariffs on Chinese electric vehicles like the EU since leaving the EU in 2020. Munoz said Britain's car market, once highly profitable and strong, has effectively become like China, adding, "All the top-selling vehicles are Chinese companies because there are no barriers."
The sales share of Chinese-brand vehicles was also higher in Britain. The European Automobile Manufacturers' Association said Chinese-brand vehicles accounted for more than 9 percent of EU car sales in the first half of 2026. In Britain, Chinese-brand vehicles made up 15 percent of new vehicle registrations, based on data from the Society of Motor Manufacturers and Traders.
Munoz also gave a high assessment of Chinese automakers' technology as well as their prices. He said the level of innovation, speed of improvement and technological capabilities of Chinese electric vehicles were "unbelievable." He was referring to Chinese automakers securing technological competitiveness as well as price competitiveness.
Concerns about the U.S. market led to his argument that current trade barriers should be maintained. Munoz said the United States should also put in place measures such as the EU's tariffs and market-entry requirements to minimise the impact of Chinese companies. The United States currently imposes a tariff of about 100 percent on Chinese electric vehicles, effectively blocking imports.
Some U.S. automakers and political figures have also shown wariness about Chinese automakers entering the U.S. market. Munoz has also argued, citing examples from Europe and Britain, that the United States should maintain market-entry barriers, and the debate over the possibility of Chinese automakers entering the United States continues.