US May Keep EV Tariff Low Threatening GM And Ford
A new report from Reuters is confusing. They were supposed to raise 100% on EVs which would help US car companies from an insight of EVS. However, Reuters reports, “The White House had said initially the new tariffs would take effect on Aug. 1 but that was delayed until sometime in September as the U.S. Trade Representative’s office studied more than 1,100 public comments, opens new tab.”
The size of the tariffs could become an election issue.
Tariff Wars
If tariffs drop even modestly, it opens the floodgates for China EV imports from the country’s leaders BYD, Nio, and Li Automotive. Some of their cars cost well under $20,000. Local EVs are already hurting GM in China.
One advantage US companies had was supposed to be quality. However, InsidEVs sent an editor to China. He drove over a dozen locally made cars. His conclusion was “Western automakers are cooked.” He added “They’re high-tech, well-executed machines in ways I hadn’t experienced from European or American manufacturers.” Used Tesla’s may help it hold market share.
China Quality
The notion that quality will be the barrier to keep China car sales down, is false
The EU has erected tariffs against the Chinese cars, but they are lower than the US ones, which means they are a real threat. BYD may build a factory in Mexico and use NAFTA regulations to get them into America. The jury is still out on that.
What the jury is not out on the is, if Chinese EVs hit the US market, US car companies are in trouble
