Mercedes-Benz may be shut out of U.S. market under bill aimed at Chinese automaker ownership

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Autos
Mercedes-Benz may be shut out of U.S. market under bill aimed at Chinese automaker ownership

Published Fri, May 29 2026 1:35 PM EDT
Updated Fri, May 29 2026 3:31 PM EDT
Michael Wayland
@MikeWayland
Luke Fountain
@Luke_Fountain25

KEY POINTS
• A House bill aimed at blocking Chinese-linked automakers could result in a U.S. ban of new Mercedes-Benz vehicles.
• Mercedes-Benz's largest individual shareholder is BAIC, a Chinese state-owned automaker.
• Sources told CNBC that exemptions outlined in the legislation would not apply to Mercedes-Benz, which has a large manufacturing presence in the country.
• Lawmakers in both parties are seeking to prevent Chinese automakers from gaining a foothold in the U.S. market.


Mercedes-Benz vehicles sit parked, on the day U.S. President Donald Trump is set to announce new tariffs, at a dealership in Copiague, New York, U.S., April 2, 2025.
Shannon Stapleton | Reuters

Mercedes-Benz could find itself shut out of the U.S. auto market — banned from making or selling new vehicles in the country — under legislation making its way through Congress. ... New bipartisan legislation aimed at limiting Chinese involvement in the U.S. auto market may sweep in Mercedes-Benz unless the bill is changed or the German automaker's largest shareholder sells its stake.

The bill, the Motor Vehicle Modernization Act of 2026, would prohibit automakers that have "any direct or indirect equity interest by a foreign-adversary government," such as China, from importing, selling or manufacturing vehicles for sale in the U.S.

Mercedes-Benz's largest individual shareholder is the state-owned Chinese automaker BAIC, formerly the Beijing Automotive Industrial Corp., with a 9.98% share. The potential implications of the legislation on the automaker are previously unreported. ... Several people familiar with the legislation who spoke to CNBC cited gray areas in the bill that, depending on how they're interpreted, could ban Mercedes-Benz from operating in the U.S.

Two sources who agreed to speak on the condition of anonymity for fear of repercussions or because they weren't authorized to speak publicly said they believe the bill, as it's currently written, would ban the company. ... "The language is unambiguous," said a former automotive policy advisor and lobbyist who was consulted about the bill.

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