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Chinese Cars Bought in Mexico Are Reaching U.S. Roads Through a Legal Loophole

A cross-border driving rule lets Mexico-registered cars enter despite U.S. tariffs.

Overview

  • Migrant traffic now includes China-made models as Mexican residents drive cars bought at border dealers into California and Texas under rules that let them use Mexico-registered vehicles in the U.S.
  • A BYD dealership in Tijuana said buyers with Mexican residency are taking new cars into San Diego, confirming the pathway is active.
  • Chinese brands sell at much lower prices in Mexico, with some Geely models near $10,000 and many around $20,000, while the average new car in the U.S. sits near $50,000.
  • U.S. policy bars direct imports with a 100% tariff and strict safety certification, yet lawmakers now discuss new limits on vehicles entering from Mexico or Canada over security and data concerns.
  • Industry leaders warn they cannot match these prices as BYD leads Mexico’s EV market and surveys show many U.S. shoppers would consider a Chinese car, which is already prompting questions at Texas dealerships.