It’s a scenario that terrifies America’s auto industry.
Chinese carmakers set up shop in Mexico to exploit North American trade rules. Once in place, they send ultra-low-priced electric vehicles streaming into the United States.
As the Chinese EVs go on sale across the country, America’s homegrown EVs — costing an average of $55,000, roughly double the price of their Chinese counterparts — struggle to compete. Factories close. Workers lose jobs across America’s industrial heartland.
You can have well regulated competition or boot legged death traps. Not both. Instead of tariffs make them regulated, with strong safety rules and need for a network. It might just give you cheap, well built EVs. They might target small city cars with 200 miles range instead of humongous SUVs that everyone is running after.