Mercedes-Benz Risks US Ban Under Proposed Bill Targeting Chinese Automakers

Mercedes-Benz may be prohibited from importing, selling, or manufacturing new vehicles in the United States under proposed bipartisan legislation targeting Chinese government influence in the automotive industry.

The legislation, known as the Motor Vehicle Modernization Act of 2026, aims to limit the ability of Chinese-linked automakers to establish a foothold in the U.S. Market. According to reporting by CNBC on May 29, 2026, the bill would ban any automaker that possesses any direct or indirect equity interest by a foreign-adversary government, specifically citing China.

Mercedes-Benz is susceptible to this provision due to its ownership structure. The company’s largest individual shareholder is the Beijing Automotive Industrial Corp. (BAIC), a state-owned Chinese automaker.

BAIC currently holds a 9.98% stake in the German automaker. Under the terms of the proposed bill, this equity interest from a state-owned entity of a foreign-adversary government could result in the company being shut out of the American market.

While the legislation includes certain exemptions, sources familiar with the bill told CNBC that these exemptions would likely not apply to Mercedes-Benz. This exclusion is reportedly due to the automaker’s extensive manufacturing presence within the United States.

Several individuals familiar with the legislation indicated that there are gray areas within the bill. Depending on how these sections are interpreted, Mercedes-Benz could be barred from operating in the U.S. Entirely.

To avoid a ban on its new vehicles, Mercedes-Benz would require one of two outcomes:

• The Motor Vehicle Modernization Act of 2026 must be amended to change the restrictions or provide specific exemptions for the company.
• BAIC must sell its equity stake in the automaker.

The bill reflects a broader effort by lawmakers from both political parties to restrict the involvement of Chinese state-linked companies in the U.S. Automotive sector.