Mercedes-Benz Faces Potential U.S. Market Ban Under Chinese Ownership Bill

Proposed Legislation Targets Chinese Ownership

A House bill aimed at blocking automakers with significant Chinese links could result in a ban on new Mercedes-Benz vehicles in the United States. The legislation is designed to restrict access to the U.S. market for companies that exceed specific limits for Chinese control.

According to reports, the bill would ban access to the U.S. market until 2032 for companies that fall under these ownership restrictions. Sources told CNBC that exemptions in the legislation would not apply in the case of Mercedes-Benz.

The Role of BAIC

The primary driver for the potential ban is the company's ownership structure. Mercedes-Benz's largest individual shareholder is BAIC, a state-owned automaker based in China.

This ownership stake puts the German luxury brand in direct conflict with the proposed limits on Chinese control outlined in the bill. Along with Mercedes-Benz, Volvo Cars has also been identified as exceeding the limits for Chinese control under the proposed legislation.

Market Context and Previous Disruptions

Mercedes-Benz currently offers a wide range of luxury sedans, SUVs, coupes, and convertibles in the U.S. market. However, the company has recently faced other operational challenges regarding its U.S. presence.

In July 2025, the automaker paused deliveries of electric vehicles (EVs) to the U.S.. Mercedes-Benz cited high dealer inventory as a primary driver for the decision to pause those imports.

Additionally, a company spokesperson previously confirmed the temporary closure of U.S. order banks for several electric models, including the EQS Sedan, EQS SUV, EQE Sedan, and EQE SUV. The spokesperson stated this move was intended to "align with customer and market demand," while noting that the company continues to assemble these models for global markets.