In "solidarity" with the U.S., Canada also has a 100% tariff on BYD cars.
China is trying to seduce the new Carney administration to lower that tariff with the promise of building a BYD factory in the country. It would be a beachhead to, later on, enter the U.S. market.
As a Canadian I hope it goes well. We desperately need to stop this "partnership with the U.S." belief. Partnership with an abusive partner is dangerous.
EU has "BYD tarrifs" as well - China is subsidizing it's electric car industry and rest of the world isn't to happy about losing manufacturing jobs, despite pandering to green transition and whatnot.
It's one thing to want to transition to green sources of energy, and another thing to unfairly compete with subsidies. I support tariffs that aim to counterbalance the latter.
BYD are building a plant in Hungary. I'm not sure how subsidised they are - in their accounts they make a profit and pay taxes. But wages are lower in China.
Trump has said if the Chinese build a plant in Mexico he'll just tariff it up and BYD are kind of non confrontational so that's probably not happening till the next presidency.
Yes, he will tariff up everything. But after a while, the average Joe will understand what the word "tariff" means. And then Joe won't be happy and the midterm elections will come.
It would be hilarious if he did that and BYD said "Go for it" and they just sold cars everywhere except the US. Extra points if they never had any intention of selling those cars in the US. Extra extra points if they bought out plants manufacturing parts for American cars and just stopped doing that and made BYD parts for BYD cars not being sold in the US.
In other words, proceed as if the US was completely irrelevant to their plans.
Sure, but Trump hates the EU, so do it anyway. If BYD built a few plants in the EU for making premium vehicles, they could probably massage that tariff situation a bit.
The point is to ignore the US and just work around it. I certainly would if I were in charge of a multi-national corporation outside the US.
China is trying to seduce the new Carney administration to lower that tariff with the promise of building a BYD factory in the country. It would be a beachhead to, later on, enter the U.S. market.
As a Canadian I hope it goes well. We desperately need to stop this "partnership with the U.S." belief. Partnership with an abusive partner is dangerous.