Economist Peter Schiff has a bone to pick with American car prices, and as usual, he's taking it to X. In a Sunday post, Schiff said that "High-quality Chinese cars" were being sold in Panama "for half the cost of comparable cars sold in America."

The reason, he argues, is straightforward: steep tariffs from the Donald Trump administration, plus restrictions on imports, are keeping Chinese vehicles out of the US market entirely. That leaves American buyers with fewer options and higher price tags.

"When interest on auto loans is considered, Americans pay more than twice as much for cars due to U.S. protectionism," Schiff said.

He's not just spitballing. According to a September 10 report from market research firm Cox Automotive, the average transaction price for a vehicle in the US in August moved back above the $50,000 mark to $50,089. That's a 1.9% year-over-year increase compared to August 2025.

Trump's Tariffs Keeping Chinese Automakers Out

Interestingly, Trump himself has previously said he was open to Chinese automakers entering the US market, provided they manufacture locally and prioritize hiring a domestic workforce instead of importing vehicles from overseas.

That idea didn't exactly get a warm reception on Capitol Hill. Sen. Bernie Moreno (R-OH) and Sen. Elissa Slotkin (D-MI) both warned that letting Chinese automakers in would deal a significant blow to domestic auto manufacturing. Bipartisan agreement on something, at least.

Chinese Automakers Globally

Meanwhile, Chinese automakers are finding plenty of open doors elsewhere. Earlier this year, Canada signed an agreement with China allowing Chinese automakers to import 49,000 EVs into the country, with that number potentially rising to 70,000 at a reduced tariff rate of 6.1%.

Europe is seeing the real surge. According to European Automobile Manufacturers' Association (ACEA) data released September 24, BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) recorded a 129.4% year-over-year surge in sales during August to 20,845 units.

Chery recorded a 200% jump to 14,048 units, while Geely Automobile Holdings Ltd. (OTC:GELHY) (OTC:GELYF), as well as SAIC Motors, each recorded more than 20% growth during August in Europe.

So while American buyers keep paying up, the rest of the world is getting a look at what Chinese automakers have to offer. Whether that changes stateside is, for now, a question of politics, not product.