As President Joe Biden announces new U.S. tariffs on several Chinese products, including electric vehicles (EVs), China-based companies may avoid tariffs by rerouting production to other countries. be.
This week, Biden announced New tariffs on Chinese steel and aluminum, semiconductors, EVs, batteries, critical minerals, solar cells, land cranes, and medical products.
Regarding EVs in particular, former President Donald Trump’s tariffs on Chinese EVs are the only trade policy currently preventing an onslaught of Chinese cars from flooding the U.S. market and seriously hurting American autos. Therefore, Mr. Biden will impose tariffs of more than 100% on Chinese-made EVs. Worker.
Some Chinese companies have already indicated they may avoid such tariffs.
BYD, the Chinese Communist Party’s (CCP) major automaker, plans to build a factory in Mexico to produce cheap EVs. At current U.S. tariffs on Mexico, these cars could be sold in the U.S. market with almost no tariffs.
BYD executives, who launched a new pickup truck in Mexico this week, said: repetition They claimed they were not interested in entering the US market.
However, U.S. Trade Representative Katherine Tai indicated that the administration is considering tariffs on products arriving from Mexico. If Mexico became a nation, such tariffs would be imposed. biggest source of information It has surpassed China to become the number one importer to the United States.
In the first three months of this year, more than $115 billion worth of products arrived in the U.S. market from Mexico. Meanwhile, less than $100 billion of goods arrived from China during the same period.
“Decades of unfair trade by the People’s Republic of China has destroyed American society and weakened our economic security,” Scott Paul, president of the American Manufacturing Alliance, said in a statement. statement Following the announcement of new tariffs on China.
Paul suggested that the tariffs should be viewed as a starting point in protecting American workers and American manufacturing from China, adding, “I look forward to working with the Biden administration and Congress to build on these gains.” I look forward to doing so.”
Similarly, Michael Stumo of the Coalition for American Prosperity (CPA) I have written X (formerly Twitter) said the new tariffs on China were a sign of “broad universal tariffs.” [are] necessary to influence the overall trade balance. ”
It’s not unheard of for Chinese automakers to shift production to Mexico or Vietnam to avoid tariffs.
Last August, the Biden administration’s Commerce Department revealed that Chinese solar companies were rerouting production lines through Cambodia, Malaysia, Thailand and Vietnam, with the apparent purpose of avoiding U.S. tariffs on Chinese solar panels. I discovered again that
“Specifically, the Department of Commerce found that five companies attempted to avoid paying U.S. tariffs by completing minor formalities in third countries, and three companies did not do so,” an agency official said of the trade violations. It is written down.
Under immense pressure from his own administration, Republicans and Democrats, Mr. Biden sided with Chinese solar companies and issued tariff exemptions despite the findings. These tariff exemptions expire in June and will not be extended, government officials clarified. Said.
Latest customs measures It’ll probably hit This is a Chinese company that has received tariff exemption in the past, but continues to produce through Southeast Asia.
John Binder is a reporter for Breitbart News. Please email jbinder@breitbart.com. Follow him on Twitter here.
