The fact that the 25% Trump-era levy on automobile imports wasn’t enough to deter Chinese EV manufacturers should leave people terrified.
The best car manufacturers struggle to hit a 20% profit margin.
It’s a bit let’s say naive to think you can have free trade competition with state sponsored foreign business.
Free trade with 7.5k in subsidies per domestically-produxed unit sold is pretty native too, isn’t it?
Exactly. So why pretend? Trying hard to look like you’re playing fair when the other side’s whole production chain is subsidized and underpinned by a heavily manipulated currency. Not to mention slave labor.
It’s not about whether “we” are any better, but whether we should at least try to save what’s left of our manufacturing sector. You can’t run an economy on shady financial services alone.
We’re talking about the same thing, right? https://www.npr.org/2023/01/07/1147209505/electric-car-tax-credit-climate-bill-tesla-volkswagen-ev
Can anyone explain this sentence?
Lawmakers have said earlier that U.S. automakers are exporting Chinese-made vehicles to the United States, a sign that current import tariffs are insufficient.
It means that U.S. automakers find it cheaper to have their vehicles made in China and then import them in the U.S., rather than make them directly in the U.S. in the first place.
This means that manufacturing in China is so cheap that even with the tariffs, it is more cost effective to go there. If your goal with the tariffs is to level the game, then this should not happen (no one would relocate like that unless there is a massive gain).
