Why Can’t You Buy Chinese EVs in the US? Tariffs, Tech Bans, and Red Tape

You cannot buy a Chinese EV in the U.S. because of high tariffs, technology bans, and the fact that the vehicles haven’t passed required safety tests. The U.S. government imposed many of these restrictions because of security concerns and the threat these low-cost, subsidized vehicles pose to the automobile industry.

Drivers in the U.S. continue to look for loopholes to buy Chinese EVs. However, the connected-vehicle ban effectively restricts most workarounds to bring the vehicles into the U.S. For more information about import restrictions on Chinese electric cars, talk to an import/export business attorney.

Is There a Market for Chinese EVs in the U.S.?

More people are looking at switching from a gas-powered vehicle to something fully electric. However, the EV selection is more limited in the U.S., and prices are higher. Only a few major electric automakers operate in the U.S., including Tesla, Polestar, and Rivian. Other automakers are entering the EV market, including Ford, Chevy, General Motors, and Volkswagen.

Chinese EVs are much cheaper than most EVs available in the U.S., which has made them immensely popular in other countries where they are available. Chinese EVs make up about 30% of the EV market share in the U.K. Just across the border, Chinese EVs make up the majority of electric vehicles in Mexico, and 20% of all vehicles sold. BYD is the top-selling brand, with other popular Chinese EV models including the Geely EX2, Xiaomi SU7, and Xpeng P7.

The low prices and advanced features have increased consumer demand for Chinese EVs among younger drivers. As gas prices rise, electric vehicles continue to gain popularity. However, for now and the near future, EVs made in China are unlikely to be available to drive in the U.S.

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Protecting the Auto Industry with Tariffs on Chinese Cars

One major reason for restricting Chinese electric vehicles from the U.S. is to protect the national automotive market. The low cost of Chinese EVs could significantly reduce demand for domestic vehicles. China heavily subsidizes its vehicles, making it harder for U.S. automakers to compete.

The Alliance for Automotive Innovation, representing several automakers, calls for a ban on Chinese-made vehicles, citing unfair trade practices, government subsidies, intellectual property theft, and surveillance.

In 2024, the Biden Administration raised tariffs on Chinese-made EVs from 25% to 100%, effectively doubling the price of the product. The tariff rate on lithium-ion EV batteries was also raised from 7.5% to 25%. These tariffs were intended to prevent China from flooding the market with cheaper vehicles. Section 301 tariffs are authorized in response to trade practices that burden the U.S. economy.

Ban on Chinese Software and Hardware in Vehicles

Separate from trade concerns, the Commerce Department’s connected-vehicle rule restricts covered software linked to China or Russia beginning with model year 2027, and covered vehicle-connectivity hardware beginning with model year 2030. Cameras, microphones, and sensors in the vehicles can gather a variety of data for telematics and automated driving.

The government has expressed national security and data privacy concerns about vehicles tracking movement, collecting personal information, and transmitting this sensitive data to China. Under the connected vehicle rule, even if you paid the tariffs, you could not import a Chinese EV with connected technology.

Passing Safety and Emissions Standards

One requirement for selling cars to American drivers is passing the NHTSA’s Federal Motor Vehicle Safety Standards (FMVSS). Chinese EVs have not passed FMVSS crashworthiness standards and cannot be sold in the country.

Vehicles must also pass EPA emissions standards. However, emissions are less of a concern because most EVs are zero-emission vehicles. Chinese automakers have not tried to test for FMVSS standards because the market is effectively closed.

Exceptions To Safety Standards for Older Vehicles

Cars that have never passed safety standards can be brought into the country after waiting 25 years. The 25-year rule under the 1988 Imported Vehicle Safety Compliance Act exempts vehicles from NHTSA safety standards. The EPA also exempts older vehicles from emissions standards after 21 years. Under this rule, buyers and collectors have sought older vehicles from Europe or Japan.

You may be able to wait 25 years to import a current Chinese EV. However, the Chinese auto industry began to grow around 2015. No regular Chinese EVs are 25 years old and qualify for the exemption.

Temporary Entry for Mexican Residents with a Chinese EV

Some drivers can enter the U.S. with Chinese EVs. However, there are narrow restrictions. Under U.S. Customs and Border Protection rules, Mexican residents can temporarily enter the U.S. with a Chinese EV not available in the country.

This is why some people report seeing Chinese EVs on the streets of Texas, California, or other border states. Chinese EVs are very popular in Mexico and make up the vast majority of EVs.

To qualify, drivers must show proper identification, carry U.S. insurance that covers the vehicle, and register the car in their name. Mexican residents can enter the U.S. and drive their car for up to one year before returning to Mexico. They cannot sell or transfer the vehicle while in the U.S.

Legal Advice on Import Restrictions for Electric Vehicles from China

Drivers looking for a Chinese EV try to find workarounds to bring the vehicles into the U.S. However, the U.S. has regularly closed off many of these loopholes to prevent a significant number of Chinese EVs from disrupting the U.S. supply chain.

Chinese automakers are beginning to build EVs in Mexico. Trade deals with Mexico would subject the vehicles to much lower import duties. However, the software and hardware security restrictions require changes to qualify for import under the current connected vehicle rule ban.

For more information about importing a Chinese EV and how it may be possible, talk to an international business lawyer for legal advice.