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A Republican sponsor of legislation tightening the US government ban on Chinese vehicles said talks are continuing to ensure Mercedes-Benz can keep selling vehicles in the country. Senator Bernie Moreno made clear Tuesday that the German automaker would not be pushed out of the American market.

The bill, approved by the Senate Commerce Committee in July, would prohibit companies with more than 15% ownership by Chinese entities from selling vehicles in the US. Mercedes-Benz has nearly 20% passive ownership from Chinese entities, placing it above the proposed threshold.

“What we’re not going to do, obviously, is ban Mercedes-Benz vehicles in America,” Moreno said. He also raised the practical challenge facing the automaker, adding, “there’s concern that, can they get to 15% without debilitating their company?”

Moreno hopes to secure fast track approval for the Chinese vehicle bill this week before the Senate adjourns until November. Discussions are continuing with Senator Rand Paul, who has objected to the legislation over its potential treatment of Mercedes-Benz.

The negotiations extend beyond the German automaker. Moreno said lawmakers have discussed how to ensure Volvo Cars, which is majority owned by China’s Geely Holding, could continue selling vehicles in the US under the proposed restrictions.

“We’re looking at a variety of different things,” Moreno said. His remarks indicate that lawmakers are examining multiple approaches as they seek to advance the bill without blocking certain established automakers from the American market.

Other manufacturers also face potential consequences under the legislation’s ownership threshold. Moreno noted that Aston Martin, which is 17% owned by Geely, and Britain’s Lotus, which is majority owned by Geely, could both be barred by the law.

Democratic Senator Elissa Slotkin, the bill’s other chief sponsor, said last week that every Democrat supports moving ahead. She identified Paul as the only senator opposing the measure, saying, “My understanding is it’s 99 to 1.”

Paul told Reuters that he viewed the measure as an unfair attack on Mercedes-Benz. “If they take it out of the bill, I told them that he bill can go forward. They need to take it out. A bill shouldn’t directly attack one company.”

Despite that objection, the legislation has significant momentum in Congress. A House version now has more than 100 cosponsors, while automakers and legislative aides hope lawmakers can secure full passage this year.

The debate intensified after US President Donald Trump told Fox News earlier this month that he would accept Chinese car companies building vehicles in the US. The statement sparked alarm among automakers as Congress considered tighter restrictions on companies linked to Chinese ownership.

Automakers, suppliers and dealers have urged Trump “to maintain policies that keep ⁠the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles inside the US.” Their appeal covers Chinese companies seeking to enter through sales, imports or domestic manufacturing.

A regulation imposed by the former Biden administration in early 2025 effectively barred all Chinese automakers from selling or building passenger vehicles in the US. The regulation was based on concerns that the vehicles could send sensitive driver data to China.

Washington also maintains tariffs of more than 100% on Chinese electric vehicles. Those tariffs stand alongside the existing regulation and the new congressional effort to restrict vehicle companies with substantial Chinese ownership.

China’s foreign ministry has previously urged the United States “to respect the laws of the market economy and principles of fair competition.” It criticized earlier proposals targeting Chinese companies as “unreasonable suppression” and argued that Chinese vehicles are popular globally because of technological innovations reflecting an aggressive home market.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.