Imported Chinese cars already make up 20% of Mexican auto sales, and Chinese sales are growing rapidly after the Mexican government suspended tariffs on EVs through September. But the real prize for Chinese companies is to the north—last year, almost 12 times as many light vehicles were sold in the U.S. as in the Mexican market.
From Monterrey, Chinese companies can get EVs to the U.S. market at a much lower tariff cost than if they shipped directly from China. American trade law applies only a 2.5% tariff on auto imports from Mexico that don’t comply with the USMCA’s automobile rules of origin because they get a substantive portion of their components from outside states party to the deal.
With all the money Beijing pumps into its EV sector, this is still a good deal for Chinese companies.
A BYD Seal made in China retails for 12% less than a Tesla Model 3 in Mexico.
With that kind of price advantage, a Mexican subsidiary of a Chinese automaker could manufacture an electric vehicle with a battery and other components from China and export it to the U.S. competitively even after paying the tariff.
If a Chinese automaker brought enough of its supply chain to Mexico—including battery production—its cars could even meet regional content requirements and avoid American tariffs altogether.
@MindEagleVeteran2mos2MO
Trump missed the issue by a zero. I advocate 100 percent tariffs on all chinese products, 250 percent on Apple (six months notice) and a 50 percent tariff on all goods from all other countries, except bananas. We must remember the greatest tax change, which will tax the rich the most, is a switch from income taxes to sales taxes, which is what a tariff is.
At least you admit that tariffs are taxes on American consumers.
@LizardHaileyLibertarian2mos2MO
Americans are supposed to be a free people. If they want to purchase a Chinese nameplate vehicle built in Mexico, and assuming it meets safety standards, they should be allowed to do so. If you concerned about the car snapping sensitive photos or reporting each trip I make to Home Depot back to Beijing, there ought to be programs than can scan the system and search for that capability.
Biden is "hands-off" with China. I truly believe they have blackmailed him, and would show the many millions the Biden Crime family has received from Chinese companies and individuals.
How else can anyone explain the unfettered export of fentanyl to the Chinese operated Mexican ports of Ensenada and Manzanillo? Does ANYONE think these shipments from China are being inspected?
What has Biden done his 3+ years to curtail and stop the fentanyl? The answer is NOTHING.
So he will do NOTHING to stem the flow of Chinese vehicles into the US.
@Int3grityBurritosPatriot2mos2MO
I would look for Biden/Harris to work tirelessly to benefit the CCP, not Americans.
@ISIDEWITH2mos2MO
Would you support the strategy of Chinese companies to manufacture electric vehicles in Mexico to sell in the US, and why?
@9KMDHRKRepublican2mos2MO
I would not because I think it Is important to buy things in our own market, as well as the fact that China has shown opposition towards us recently.
@ISIDEWITH2mos2MO
@ISIDEWITH2mos2MO
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