US Senate Debates Bill: Sales Ban for Mercedes over Chinese Shareholders Moves Closer

Chinese Stakes Below the 15-Percent Threshold

Nonetheless, the Stuttgart-based automaker came into the focus of the debate. The responsible Committee on Commerce, Science, and Transportation referred the draft to the full congressional chamber. The deliberations mark the first formal step on the path to a possible amendment of the law, but the outcome remains open.

Both Cruz and his party colleague Bernado Moreno, who is behind the draft, assured that they did not want a sales ban on Mercedes vehicles in the USA. Cruz also advocated removing the 15-percent threshold. He also raised the question of whether this value had been chosen in order to weaken the German rival of the US giant General Motors.

Cruz and Moreno Do Not Want a Ban for Mercedes

Moreno pointed out that the draft gives automakers the opportunity to apply for exemptions from the Department of Commerce. Politically, he stands for a tough line toward China and is regarded as a supporter of the current US President Donald Trump. Personally, he has a connection to the brand: in 2005, he took over a Mercedes dealership in Ohio and successfully expanded it.

The domestic US industry is also affected: GM has the Buick Envision built in China, Ford has the Lincoln Nautilus built there. From 2028, the Buick Envision is to roll off the production line in the USA. The Polestar brand, which belongs to the Chinese group Geely, must withdraw from the US market from 2027.

Economic Interconnection with the USA

Mercedes pointed to its economic significance in the USA: the company contributes to around 160,000 jobs in the USA. Over the past ten years, the company has invested an average of around one billion dollars in the USA and plans to invest a further seven billion dollars in its US activities by the end of the 2020s, including at its two plants in Tuscaloosa in the state of Alabama and Charleston in South Carolina.

The debate caused slight uncertainty in the markets. In pre-market trading on the Tradegate platform, the stock was temporarily down 0.45 percent at 44.89 euros. Analyst houses were cautious: RBC Capital Markets rated the Mercedes-Benz Group as „Sector Perform" on 14.07.26, UBS as „Neutral" on 29.06.26. Deutsche Bank AG rated the stock as „Buy" on 16.07.26.

Reactions from Analysts and Investors

The debate in the Committee on Commerce, Science, and Transportation is likely to have been just the opening. Should the full congressional chamber approve the draft, manufacturers such as Mercedes would have to prove that their vehicles meet the future requirements, or apply for exemptions. Industry observers expect further adjustments to the draft before a final vote takes place.

Regardless, the procedure illustrates the growing political sensitivity toward Chinese stakes in key Western industries. For Mercedes, it remains decisive whether the threshold named in the draft remains in place or – as demanded by Cruz – is removed. A lower or even absent threshold would significantly increase the pressure on the automaker.