Cheap Chinese cars that are illegal in the US are flooding Texas border cities

The cars aren’t supposed to be there. Not officially, anyway. Yet in parts of Texas, they’ve started to become a rather familiar sight.

In cities close to the US-Mexico border, drivers are increasingly spotting Chinese-made vehicles on local roads. It’s not because the rules have changed overnight. It’s because geography has created something of a workaround.

Chinese carmakers have effectively been locked out of the American motor market since January 2025.

Strict regulations brought in under former President Joe Biden

Mexico, however, plays by a different rules entirely. Chinese brands can sell there legally and with no tariff, which has created a slightly unusual situation along the border.

In a few towns and cities like El Paso, where Mexico is just a few minutes away, some drivers simply cross back and forth behind the wheel. The result is that cars that aren’t meant for the US market are pitching up and being driven on American asphalt anyway.

Among the brands being spotted are BYD and Geely. Both have built reputations for offering far cheaper alternatives to their American and European rivals, while still maintaining quality.

Local dealerships are saying that the curiosity is spreading. Ronnie Lowenfield, chief executive of Casa Auto Group in El Paso, claims that his customers are increasingly asking about the Chinese models they’ve seen nearby. For US dealers, it’s a slightly awkward conversation that often ends in disappointment for the person posing the question.

New cars in America now average more than $50,000. That gap is pretty hard to ignore once people start doing the maths.

Some Chinese models undercut those prices dramatically. The Geely EX2, for example, starts at just over $10,000. And they’re not poor vehicles, either. They’re of a decent quality.

Luis Hernandez, a Geely salesman in Mexico, says that difference is winning people over. ‘People come, they see the difference and they’re impressed,’ he told The Wall Street Journal.

He’s even managed to persuade loyal customers of established US brands to switch. ‘If they were allowed to be sold in the United States – they would destroy the American car market,’ he added.

That possibility is exactly what has politicians on edge. Concerns aren’t just about price competition, however. There are serious worries over technology and security too.

Senator Elissa Slotkin has warned that cars using Chinese-developed software could pose risks. ‘Allowing Chinese cars into the United States with full motion video, geolocation and the ability to be hacked via Bluetooth is a threat to our national and economic security,’ she argued in a statement on X.

The debate has reached DC in a big way. More than 70 House Democrats have recently urged the White House to keep restrictions firmly in place. All because of national security.

There are also plans to tighten things further. Senator Bernie Moreno has said he will introduce legislation aimed at stopping Chinese vehicles entering via Canada or Mexico.

His proposal would go even further, blocking joint ventures between US and Chinese carmakers. It could also force Chinese-owned firms with American links to sell off those interests.

Despite that, there are signs of a softer tone elsewhere. Earlier this year, President Donald Trump suggested he wouldn’t be entirely opposed to Chinese firms setting up factories in the US.

‘If they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great,’ he told the Detroit Economic Club. ‘I love that.’

‘Let China come in, let Japan come in. They’ll be building plants, but using our labor.’