"Rising Threat: Chinese Carmakers' Mexico Strategy Endangers U.S. Auto Sector, Warns Trade Group"

Chinese automakers, including BYD, are using Mexico as a backdoor to gain access to the US auto market through the more favorable tariffs under the USMCA, posing an "extinction-level" threat to the US auto sector, according to the Alliance for American Manufacturing. The report warns of the potential impact of Chinese EVs, which are backed by heavy state support, on the US auto industry and calls for policy recommendations to combat overcapacity and unfair trade practices. With Chinese carmakers scouting for manufacturing locations in Mexico and surging imports of Chinese cars into the country, the threat is seen as scarier than many people realize, potentially leading to an extinction-level event for the US auto sector.