U.S. Limits Chinese Content in Freight Rail Cars

The U.S. Department of Transportation (DOT) issued a final rule on December 19, 2025,  that will place the following restrictions on newly-built freight cars placed into service in the U.S. In essence, this rule seeks to limit the use of foreign-made components, particularly those from China, in U.S. freight cars to bolster national security and protect American businesses.

Key Restrictions:

1. Manufacturing Location:  Freight cars must be made in qualified facilities by qualified manufacturers.
2. Foreign Content Limits:  No more than 20% of a freight car's components can come from "countries of concern" (currently only China) or state-owned enterprises. This limit decreases to 15% after three years. Sensitive technology and essential components cannot originate from these sources.
3. Intellectual Property Protection: Freight cars cannot contain components that infringe on U.S. intellectual property rights.
4. Manufacturer Responsibility:  Manufacturers must certify compliance and maintain detailed records.

Consequences of Non-Compliance: 

Manufacturers may face civil penalties and be barred from supplying freight cars to the U.S. rail system.

To view the formal notice, visit:  https://www.federalregister.gov/documents/2024/12/19/2024-30030/freight-car-safety-standards-implementing-the-infrastructure-investment-and-jobs-act