China

China is following their standard plan to move into the US car market. The Chinese government supplements the industry to produce low priced cars which can then be sold on the world market and eliminate any competition. This is what happened to US steel companies like Bethlehem Steel. China began sending cars to Mexico after the USMCA trade deal was adopted under Trump. Trump placed a 25% import tax on Chinese cars and so China planned to circumvent the tax by shipping cars first to Mexico and then to the USA. China has set up 29 new car manufacturing plants in Mexico since June of 2022. Trump stated that allowing cheap Chinese cars into the US would cause a blood bath in the US auto industry. Chinese EV's start at $13,000 and the average cost is $22,000 which is less than half of the average cost of an American made EV. Trump then threatened to increase the tax to 50% and more recently he suggested 100%. In May of this year Biden recognized the threat and proposed a 100% import tax on Chinese cars coming in from Mexico. This was unnoticed by the American press which made a big fuss when Trump introduced the import taxes on Chinese goods saying these cost would be pushed on the US consumer. Biden kept these taxes in force because they were bringing in billions to the US treasury.