According to Reuters, on February 23rd local time, the Alliance for American Manufacturing stated that the U.S. government should prevent the import of low-cost Chinese cars and components from Mexico, warning that this could threaten the survival of American car companies.
The Alliance for American Manufacturing said in a report, "Introducing low-priced Chinese cars to the U.S. market could ultimately spell disaster for the American automotive industry."
The organization believes that the U.S. should work to prevent Chinese companies based in Mexico from benefiting from the North American Free Trade Agreement. "The U.S. should close the commercial back door open to Chinese car imports to prevent the closure of a large number of factories and the loss of jobs for American workers."
The Alliance for American Manufacturing also pointed out in the report that under the U.S.-Mexico-Canada Trade Agreement, cars and components produced in Mexico are eligible for preferential treatment in the U.S. and are eligible for a $7,500 tax credit for electric vehicles.
In response, the Chinese Embassy in Washington stated that Chinese car exports "reflect the high-quality development and strong innovation capabilities of China's manufacturing industry... China's automotive industry's leapfrog development provides the world with high-cost-effective and high-quality products."
About a year ago, Tesla announced plans to build a factory in the northern Mexican state of Nuevo Leon. BYD also plans to establish an electric vehicle factory in Mexico, which has attracted new attention. BYD, known for its affordable models and diverse product lineup, has surpassed its biggest competitor Tesla and become the world's best-selling electric vehicle manufacturer.
A bipartisan group of U.S. lawmakers is urging the Biden administration to impose tariffs on Chinese-made cars and study how to prevent Chinese companies from exporting cars to the U.S. from Mexico.
A group of lawmakers is urging U.S. Trade Representative Katherine Tai to raise the 27.5% tariff on Chinese cars and says her office "must also be prepared to address the imminent wave of (Chinese) car exports coming from other trading partners such as Mexico, as (Chinese) car manufacturers seek to strategically establish operations outside of China."
John Bozzella, CEO of the Alliance for Automotive Innovation, has said that proposed environmental regulations in the U.S. could give China "a stronger foothold in the U.S. electric vehicle battery supply chain and ultimately enter our automotive market."
It is reported that in December of last year, the U.S. Treasury Department issued guidelines for tax credits for electric vehicles, aimed at keeping the U.S. electric vehicle supply chain away from China.
