If Republican nominee Donald Trump wins the election in November and threatens to establish a 100 % tax on Chinese automobiles made in Mexico, various Chinese automakers will experience.
Trump vowed on Saturday, while delivering a campaign statement in Dayton, Ohio, to prevent the transfer of Taiwanese trucks from Mexico.  ,
Trump said,” Those big monster car manufacturing plants you are building in Mexico right now and you think you will get that if you do n’t hire Americans and sell the car to us,” not “no.” ” We are going to throw a 100 % tax on every vehicle that crosses the lot.”
Trump announced in early March that he would levy a 50 % tax on Foreign automobiles if he wins the presidency. Additionally, he suggested imposing tariffs of up to 60 % on all Chinese goods and 10 % on products produced outside of China.  ,
In addition to the customary 2.5 % tariff, the Trump administration had added an additional 25 % to the Chinese market in May 2019. Joe Biden, the president of the United States, continued to carry out the plan after taking office in January 2021.
Trump made reference to his strategy to launch a new trade war with China during a conversation delivered in South Carolina on February 23.  ,
” If China or any other nation makes us pay a price of, this state 100, 200 or even 300 %, and they do that, we may make them pay a mutual equivalent price of 100, 200 or 300 % right back”, he said. You screw us, and we screw you, you say that. Quite simple”.
A foreign blogger posed a question on March 12 to Wang Wenbin, a typical Chinese Foreign Ministry presentation spokesperson, about Trump’s request to increase Chinese goods ‘ tariffs to 60 %.
Wang remarked that” the US and China have a win-win formula for economic and trade.” ” Waging trade and tariff war do not offer China, the US, and the rest of the world in general””
According to Taiwanese internet, the number of cars sold by China’s car companies in Mexico increased to 134, 000 products in 2023 from 30, 000 products in 2021. Chinese autos ‘ overall market share increased from 3 % during the time to 10 %.
Major Chinese manufacturers in Mexico include SAIC Motor party’s MG Motor, Chery Automobile, JAC Motors, Changan Automobile and Geely Auto. SAIC’s MG5 and Chery’s Omoda and Tiggo 4 Pro are among the most common car models in the country.
New regulations
The Protecting American Autoworkers from China Act was introduced by Republican Senator Josh Hawley on February 28. It “aims to counter the threat posed to the US automobile industry by raising taxes on imported cars from China and closing the rear door Taiwanese manufacturers use to escape US business laws.”
The Act would result in a total tariff of 125 % on all imported Chinese vehicles, raising the base tariff rate for all imports to 100 %.  ,
Regardless of the country where the car is made, Hawley claimed that the higher tariffs should be applied to all imported vehicles made by Chinese automakers. He claimed that this will prevent Chinese manufacturers from avoiding these new tariffs by using other countries, such as Mexico.  ,
His request came after the China Association of Automobile Manufacturers reported in early February that China exported 4.91 million vehicles in 2023, surpassing Japan as the largest exporter of automobiles worldwide. Last year, Japan exported 4.42 million units of cars, buses and trucks.  ,
In an article published on February 29th, a columnist from Hunan-based” Da Zhou” writes that if the new legislation, proposed by Hawley, will make it difficult for Chinese automakers to expand in the US.  ,
The author claims that the US does not want to suffer from the effects of the importation of a sizable number of Chinese vehicles. He claims that the US lost in its auto industry competition with China because of the suggestion of imposing a 100 % tariff on Chinese automobiles.  ,
He adds that American consumers who want to purchase Chinese cars at affordable prices will be negatively impacted by the potential introduction of new tariffs.
The three biggest Chinese electric vehicle manufacturers, including MG, BYD, and Chery, spoke with Mexican officials about plans to build factories south of the US border, according to the Financial Times report from December.
Mexican officials said they would remain cautious and prevent upsetting the US in this regard, but the report claimed US officials had raised concerns about Chinese investment in Mexico.
Read: US wants allies to boost chip ban against China
Follow Jeff Pao on Twitter at , @jeffpao3