Chery Explores U.S. Partnerships to Bypass Auto Tariffs
The Chinese automaker is seeking local collaboration to bring its Omoda and Jaecoo brands into the North American market.
Updated on Oct. 21, 2026 in Auto Parts
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Chinese automaker Chery is exploring potential partnerships with U.S. manufacturers to navigate the North American market. The company, which produces Omoda and Jaecoo vehicles, also plans to launch its brand in Canada in early 2027.
Why it matters
Chery aims to bypass current trade hurdles by developing vehicles that rely on non-Chinese hardware and software. This strategy is essential for the company to enter North American markets where Chinese automakers face tariffs exceeding 100 percent.
Chinese automakers are currently subject to U.S. import tariffs exceeding 100 percent. Chery is now working to design vehicles that avoid Chinese-sourced hardware and software to satisfy local market requirements.
The players
Chery
A Chinese automaker based in Wuhu that manufactures the Omoda and Jaecoo vehicle brands.
The details
To expand its reach beyond its Wuhu headquarters, Chery is focusing on manufacturing and design independence from its home country. By seeking partnerships with established American firms, the automaker hopes to leverage local infrastructure to circumvent the high tariffs that currently limit its U.S. entry. This shift involves re-engineering the Omoda and Jaecoo lineups to comply with the technical standards of new target regions.
Timeline
1999: Chery produced its first vehicle.
October 21, 2026: Chery executives announced interest in partnerships with U.S. firms.
Early 2027: Planned launch of the Chery brand in Canada.
The Home Front
The automotive industry is currently navigating a period of heightened trade protectionism, specifically regarding the United States' 100 percent tariff rate on imported Chinese automobiles. Chery's pivot to partnership-led expansion signals a shift in how foreign manufacturers may attempt to enter Western markets.
Drivers interested in the potential arrival of Omoda or Jaecoo vehicles should monitor local dealership networks as 2027 approaches. While these brands are not currently sold in the U.S., future partnerships could eventually change the availability of these specific vehicle models in your region.
The takeaway
Chery is attempting to overcome significant import barriers by seeking deeper ties with North American automakers. Potential buyers should keep an eye on upcoming brand announcements as the company moves closer to its planned 2027 Canadian launch.
Further reading
For more on the changing landscape of vehicle manufacturing and parts, explore our Auto Parts section.
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Should the US allow Chinese automakers to partner with domestic companies to enter the market?
