Fact Check: Trump Says He Has Stopped China Car Factory Plan in Mexico

Donald Trump has pledged a broad and punitive series of tariffs on Chinese imports if elected president in what he sees as an incentive for businesses to manufacture in the United States.
During his presidential campaign, Trump has called for tariffs of 10-20 percent on “countries that have been ripping us off” and 60 percent on products from China specifically.
He also suggested introducing tariffs of up to 2,000 percent on some foreign cars, commenting at the Economic Club of Chicago earlier this month: “If I’m going to be president of this country, I’m going to put a 100, 200, 2,000 percent tariff.”
At a rally this week in Greensboro, North Carolina, Trump claimed his words had already made an impact, saying a Chinese auto manufacturer had “abandoned” plans to build in Mexico.
The Claim
At the rally in Greensboro on October 22, 2024, Trump said: “And because of me I just stopped the largest plant anywhere in the world being built in Mexico owned by China.
“They were going to make cars and they were going to, you know this story came a year ago, they announced ‘largest plant in the world’ they’re going to make cars, sell them into the United States and destroy Detroit, Michigan, and all of Michigan.
“They were going to make more cars in that one plant than all of Michigan makes as a whole, and I said, ‘You’re not going to do it’ and I said, ‘You know what? I’m going to run for president and I’m going to put tariffs on that damn plant and you’re not going to do it’ and I just heard last week they’ve abandoned the plant because of Trump.
“Because they think we’re going to get elected and they say, ‘If Trump gets elected we’re going to lose our ass and we’re not going to do it,’ so they decided they’re not going to build the plant.”
The Facts
There is no evidence this is true. Asked by Newsweek which plant he was referring to, Trump’s campaign team has not yet provided an answer.
“President Trump wants to grow manufacturing in America that keeps the jobs we have and adds more jobs for American workers,” campaign director of regional communications Rachel Reisner told Newsweek.
Based on his description, Trump appears to be referring to the auto manufacturer BYD which announced plans earlier this year to build a plant in Mexico. Bloomberg reported in June that the plant would create 10,000 jobs, comparable to the country’s largest auto factories.
The company’s Mexican head Jorge Vallejo said in October that it expected to sell 50,000 electric vehicles in 2024 and 100,000 in 2025, as reported by Reuters. Speaking to the outlet in February, BYD’s Americas CEO Stella Li said the factory was for the Mexican market “not for the export market.”
However, in September Bloomberg reported, based on unnamed sources, that BYD would not announce a major plant investment until after the U.S. election, saying that the company had stopped actively searching for locations. The company later said it had not postponed “any decision” regarding its factory in Mexico.
“BYD hasn’t postponed any decision about a Mexico plant,” Li told Reuters in a statement.
There is no evidence that Trump has intervened or spoken with BYD about its plans, nor that his threats of tariffs have led to any decisions.
Newsweek has contacted a BYD spokesperson via email for comment.
The Ruling
False.
There is no evidence this is true. The company that Trump appeared to refer to, BYD, had been planning to build a large plant in Mexico. In September, unnamed sources told reporters it would not make any major announcements until after the U.S. election. A BYD executive later said that it had not postponed any decision. There is no evidence it has “abandoned” the plan.
Earlier this year a BYD executive said that the factory was for vehicle sales in Mexico, “not for the export market.”
FACT CHECK BY Newsweek’s Fact Check team