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There's a national defense argument for protecting domestic auto manufacturing, not just economics.
Right. We only want US-based companies spying on US citizens going about their normal, everyday lives. What kind of espionage tools do you think come included in with these quickly and cheaply produced Chinese vehicles? Or are you saying we need to keep domestic manufacturing, just in case the plants are needed to switch over to making tanks, planes, etc. during WW3?
Privacy is a concern with both domestic and foreign manufacturers. But there's additional concerns when a foreign manufacturer becomes an enemy state. Weaponization of automated features, surveillance of public infrastructure, and a loss of manufacturing skills are all legitimate concerns.