Electric Vehicles ( EVs ), one of the products that President Joe Biden has announced recently face new US tariffs. China-based companies can evade those tariffs by moving production through other nations.
This month, Biden announced fresh tariffs on Chinese , steel and aluminum, semiconductors, EVs, batteries, essential minerals, solar cells, deliver- to- shoreline cranes, and health products.
In particular, Biden will slap over 100 percent taxes on China-made EVs because former President Donald Trump’s tariffs on China-made EVs are the only business plan currently in place to stop an avalanche of Chinese cars from flooding the U.S. industry and significantly depressing the nation’s auto workers.
Some Chinese businesses have already made an effort to avoid these levies.
The Chinese Communist Party’s (CCP ) premier automaker, BYD, is planning , a factory in Mexico to produce its cheap EVs. At present U. S. tax rates with Mexico, those vehicles could be sold in the U. S. marketplace facing scarcely any taxes.
Professionals from BYD, which unveiled a new pickup truck this week in Mexico, have repeatedly stated that they are uninterested in entering the U.S. business.
However, U.S. Trade Representative Katherine Tai has suggested that the management is considering imposing taxes on Mexican goods. As Mexico has surpassed China as the top importer, causing taxes to be imposed on the country.
More than$ 115 billion of products have been imported into the U.S. business from Mexico in the first three weeks of this year. Meanwhile, fewer than$ 100 billion worth of products from China have arrived during the same period.
Following the announcement of the new China taxes, Alliance for American Manufacturing President Scott Paul stated in a statement that “decades of unjust industry by the People’s Republic of China have devastated American communities and weakened our economic security.
Paul made the suggestion that the taxes should be used as a first step in defending American workers from China and the country’s manufacturing base, saying,” We look forward to working with the Biden administration and Congress to build on these successes.”
Likewise, Michael Stumo with the Coalition for Prosperous America ( CPA ) wrote on X, formerly Twitter, that the new China tariffs are an indication that “broad universal tariffs ]are ] needed for overall trade balance impact”.
It would not be exceptional for Taiwanese manufacturers to shift production to Mexico or Vietnam to prevent the taxes.
In August of last year, Biden’s Commerce Department again , found that Chinese thermal firms are rerouting their production lines through , Cambodia, Malaysia, Thailand, and Vietnam in a clear efforts to escape U. S. tariffs on Chinese solar panel.
In particular, agency officials wrote of the trade violation that five businesses were attempting to avoid paying U.S. duties by carrying out minor processing in third countries and that three companies were not circumventing the findings.
With immense pressure from his own administration, Republicans, and Democrats, Biden sided with the Chinese solar companies and imposed a tariff waiver despite the findings. Administration officials have stated that these tariff waivers will expire in June and will not be extended.
The most recent round of tariffs will affect Chinese businesses that have previously been granted tariff exemptions but still route their goods through Southeast Asia.
John Binder is a reporter for Breitbart News. Email him at [email protected]. Follow him on Twitter , here.
