BYD would still have the cheapest EV in the US, even with a 100% tariff
BYD would still have the cheapest EV in the US, even with a 100% tariff

BYD would still have the cheapest EV in the US, even with a 100% tariff

Even with the new 100% tariff on electric vehicles imported from China, BYD would still have the cheapest EV in the US. According to a new report, BYD’s lowest-priced EV would still undercut all US automakers at under $25,000.
After discontinuing the production of vehicles powered entirely by internal combustion engines in March 2022, BYD has been at the forefront of the industry’s shift to EVs.
Honestly in my opinion it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in. American car manufacturers refuse to fill the market need.
One essential thing bears repeating: it's not the manufacturer that bears the cost of tariffs, it's the customers. Or said another way, if BYD cars double in price in the US, it's American customers who will pay the difference.
A certain presidential candidate loves to beat that drum but consistently fails to mention that the immediate effect of new tariffs is making Americans poorer.
There are some situations where imports being cheaper is due to foreign government subsidies undercutting local production and tarrifs are the wat to level the field. Frequently this gets warped into protectionism, allowing local production to have a leg up while continuing their crappy business practices, like most US auto manufacturers.
In this case the 100% tariffs is mostly the latter. It was not a thought out rate based on any kind of logic, just an emotional overreaction.
We do not need someone in office proposing reactionary, emotionally based tax policies.
Also, lack of labor, safety, and environmental regulations. Chinese companies literally own slaves, no worker can't compete with free. Combine that with safety and environmental, you get cheap manufacturing.
??? China has literally been subsidizing BYD to help it to beat out foreign manufactures and to make it competitive in foreign markets. So yeah, there may be some protectionism involved, but there is definitely an argument that China is unfairly subsidizing BYD, making it impossible for rival companies to compete.
https://electrek.co/2024/04/12/china-gave-byd-an-incredible-3-7-billion-to-win-the-ev-race/
What US manufacturers? There is only GM, Ford, and Tesla left. People are so ignorant of the market here while simultaneously telling us all "how it is" with their strong, uninformed opinions.
The point of tariffs like that is to allow us made vehicles be the option of choice to buy.
The $25,000 ev means it's a cheaply made car at what would have been an awesome price at $12,500, but not so great at $25,000.
American manufacturers could/would never be able to compete against a $12,500 ev sedan. So the tarriff keeps American evs bloated prices from looking too unreasonable. They can still compete against a $12,500 car being sold for $25,000
The higher price point caused by passing on the tariffs to consumers hurts the manufacturer through reduced sales.
Tariffs do hurt companies by driving potential sales elsewhere.
Or they would, if the product wasn't still the cheapest available by 10-30% after the tariffs.
Re-read what I wrote:
Do tariffs work? Maybe. You also have to remember that China will retaliate and impose tariffs on US good, so overall the effects of tariffs are rarely a net benefit for anyone - which is why they're rarely a good idea.
But the fact remains that the day after tariffs are applied, Americans lose access to cheaper goods. That's just a dry fact.
And the locals that lose their means of providing for themselves.