A band-aid that ignores the underlying problems.

Why can't US manufacturers compete with China?

Inferior technology, lack of automation, higher energy costs.

This violates free market principles. If they are worried about consumer privacy they should pass a robust automotive consumer privacy law (the American car companies spy even worse because they sell the data with impunity)

Also it will just mean that US car companies don’t have to address their shortcomings and will lose the world while keeping the us market.