Trump threatens to impose additional tariffs on Chinese cars again

On August 19 local time, former U.S. President and current Republican presidential candidate Donald Trump once again threatened to impose tariffs on cars exported to the U.S. from Mexico by China and other countries, sparking widespread attention. During his campaign, Trump reiterated that if he returns to the White House, he would consider canceling the existing $7,500 tax credit for electric vehicles and implement a series of tariff measures to prevent foreign automakers from producing cars in Mexico for export to the U.S.

Trumps statements clearly reflect his continued advocacy for Made in America. He emphasized that if China and other countries want to sell cars in the U.S., they should build factories in the U.S., hire American workers, and thereby revive the U.S. automotive manufacturing industry. Trump stated, We will make our own cars. I want cars made in America. This stance aligns with his long-standing protectionist trade policies.

Trump also noted that he is considering repealing Biden administration regulations requiring automakers to increase production of electric and hybrid vehicles to meet stricter emissions standards. He argued that due to high costs and battery range limitations, the market for electric vehicles remains limited, consistent with his preference for traditional internal combustion engine vehicles. Although Trump claimed to be a big fan of electric vehicles, he simultaneously expressed support for traditional and hybrid vehicles.

Notably, during this interview, Trump praised Tesla CEO Elon Musk and expressed willingness to consider appointing Musk as a cabinet member or advisor in a new administration. Musk is a leading figure in the electric vehicle sector, and his company Tesla has driven the global adoption of electric vehicles. However, it remains uncertain whether Trumps remarks will translate into actual policies in the future.

Since March of this year, Trump has repeatedly threatened to impose tariffs as high as 200% on Chinese cars produced in Mexico and exported to the U.S., vowing to make them unsellable. This threat targets not only Chinese companies but also other international automakers with factories in Mexico, particularly Detroits Big Three—General Motors, Ford, and Stellantis. Trump believes Mexico is stealing the U.S. auto industry and advocates using tariffs to force these companies to produce domestically, thereby preserving U.S. jobs.

However, Trumps policy proposals face numerous challenges in practice. First, the global automotive manufacturing industry is deeply integrated, and Mexico, as part of the North American Free Trade Agreement, attracts significant investment due to its lower production costs. Imposing high tariffs on these cars would not only raise prices for U.S. consumers but could also trigger international trade disputes, further impacting the U.S. economy and foreign relations.

On the other hand, Trumps threat to cancel tax credits for electric vehicles has drawn industry attention. The Biden administrations tax incentives are seen as crucial for promoting electric vehicle adoption, and canceling them could hinder the growth of the U.S. electric vehicle market and affect the U.S. position in globalNew energycompetition.

Trumps remarks are clearly aimed at appealing to voters skeptical of globalization and free trade ahead of the upcoming presidential election. However, whether these policy proposals can be implemented remains to be tested in reality.

Overall, Trumps statements once again highlight his commitment to America First policies, particularly in manufacturing and trade. He seeks to revive U.S. manufacturing and reduce reliance on foreign goods through tariffs and tax credit cancellations. However, such protectionist policies could have numerous negative consequences in todays highly interconnected global economy. If Trump returns to the White House, the implementation of these policies and their impact on U.S.-China economic relations and the global automotive industry remain to be seen.