Historic wave of tariffs on 'strategic' Chinese imports

[VAF84]

Not to mention China doesn't have to worry about property rights, environmental concerns, or protestors. The governments facilitates building what they want, where they want without concern for either. Protestors get rounded up and sent to jail.

Want to mine raw materials necessary for EV's in America? First try negotiate with multiple land owners/stakeholders. Then work your way through Washington beaurocratic mess to get the proper permits and environmental clearance. Make sure the turtles get sent to the turtle hotel and the spots where they were picked up are marked so they can be returned there when you're done. Or wait for the protected bird to willingly fly off the crane it decided to perch on to resume work as per the regulation, etc. Once your project is about to get approved 2-3 years after millions in engineering fees and studies, delay it another year as the lawsuits pour in from non-profits, environmentalists, or a protected class that claims their long lost ancestors have rights to the land. Somehow, you've surpassed all of this to get started, but a new administration rolls in and changes the rules after the fact, and requests another review and more studies. All the while a band of protestors just ran onto your site and chained themselves to your machinery, and you legally cannot remove them forcefully. And on and on and on....

Meanwhile, in China.

Xi: "Make it so, and don't let anyone stop you."

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[climateguy]

Michael Dunn grew up immersed in the auto industry in Detroit. As a teenager he drove the "getaway" car for his photographer father who was often the first photographer to sell pictures of the latest desirable vehicles before they were formally unveiled to the public. He has been in Asia for more than 25 years observing and working near Detroit and Chinese automakers operating there. He commented on a podcast, about China's relationship with the West during the last few decades, by quoting from one of the songs he remembered from his youth, i.e. "Night Moves":

"I used her, she used me but neither one cared
We were gettin' our share
Workin' on our night moves..."

He supports high tariffs on Chinese EVs. His view is that the Chinese had a strategy to dominate global solar panel production which they have done. They have been aiming to dominate EV production by using that same strategy. They are on their way, and if the West wants to make autos in the future, high tariffs for a short period coupled with a big effort to catch up is required. He isn't that sure we can succeed....

 

[ryun]

My knee jerk reaction is I'd be a proponent of the increased tariffs if I thought it meant any of the auto makers that sell in the USA would pivot towards making more affordable EVs. They won't*. Instead of putting in the work, they'll just lobby for every possible loophole and subsidy until it is too late.

*Exception being Volvo with the EX30. Though not ironically I think the EX30 was designed in China and will be produced there too.

 

[Montecarlossfan]

The EV tariff is meaningless. There are currently no chinese EVs sold in US. They knew this was coming and are actively working on creating assembly plants in Mexico. Since Mexico doesn't have slave labor, this will increase the price a little bit, but chinese EVs are coming.

Technically we do have Chinese ev’s .. Polestar.. made by Geely motors in china and imported here.

 

[hturnerfamily]

the reason for tariffs on 'Chinese built and imported' EVs is not because we don't normally embrace 'free trade', but because free trade does not include a government subsidizing a vehicle, built in their country, shipped overseas, and landed here in the U.S. at artificially low MSRP sales pricing.
That is a totally different and obviously unfair 'business practice', which is likely only to import communist-built vehicles to swamp the U.S. market, undermining the U.S.-based manufacturers and their employees, which could affect, personally, many of us... not to mention any nefarious SOFTWARE that could be embedded in these vehicles.

I'm sure that there were many similar feeling back in the late 60's/early 70's when Toyota and Honda and other 'Japanese' vehicles were starting to gain traction in the U.S. market, even if slowly. The government eventually realized the major disruption this could cause to our own manufacturing, and instituted measures to create a more 'even' playing field. Japan was even deploying excess taxation on our own imports into their market.

Yes, if a superior-built vehicle, or with more generous amenities and design, comes into the market, from ANYWHERE, the U.S. has never been against that as a choice for the public, but, on an 'even' playing field - not one where a government is subsidizing the manufacturer in order to create a artificially 'low cost' entry into a foreign market.

 

[Joe.....Montana]

My knee jerk reaction is I'd be a proponent of the increased tariffs if I thought it meant any of the auto makers that sell in the USA would pivot towards making more affordable EVs. They won't*. Instead of putting in the work, they'll just lobby for every possible loophole and subsidy until it is too late.

*Exception being Volvo with the EX30. Though not ironically I think the EX30 was designed in China and will be produced there too.

Volvo is owned by Geely now and the EX30 is full Chinese. I posted an article discussing how "Volvo" (Geely) is getting around import rules.

 

[shutterbug]

Technically we do have Chinese ev’s .. Polestar.. made by Geely motors in china and imported here.

I think Polestar will not be covered by this tariff increase, and may well be an example of how the tariff will be evaded.

 

[Montecarlossfan]

I think Polestar will not be covered by this tariff increase, and may well be an example of how the tariff will be evaded.

Absolutely no tariff It’s “Volvo”

 

[Scorpio3d]

Honestly, China hardly cares what the US does at this point. Their auto market is twice the size of ours and our EV infrastructure is not even on the same playing field. The reason Chinese EVs are so good and interesting is that just having range isn't enough to compete anymore.

Keep in mind that this is a country that is upgrading their cross country high speed (240 mph) rail system while we dream of someday having a line somewhere in California. Who did they copy that from?

Japan built the first bullet train in 1964! Europe has had them for decades as well!
They have been talking about one in Texas for quite a few years, but have been dealing with property rights and a lot of other issues!… Probably lobbying from the airlines as well.

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