Mexico, China, Tariffs

I expect everyone is familiar with the $7500 IRA tax incentive in the US for “US made” EVs. What you may realize is that the US auto industry is, at the same time, using the US-Mexico free trade agreement to be able to export a lot of their auto manufacturing work to Mexico.

BYD, a Chinese auto manufacturer, has been shopping for land in Mexico to manufacture EVs that it could then import into the US tax-free. Both Biden and Trump have pretty much said that isn’t going to happen. This may (or may not) protect some US auto industry jobs but make US consumers the victim.

You probably know my opinion on all this: tariffs and such are protectionism which generally just creates other issues. Allowing General Motors to make cars in Mexico but taxing BYD if they try to do it just creates complicated regulations that really don’t protect US workers.

There is more to it. Check out what The Electric Viking has to say.

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