Chinese EVs: A Major Threat to American Automakers Despite Trade Barriers

Chinese electric vehicles (EVs) face trade barriers in the US market due to tariffs and exclusion from advantageous credits, hindering their presence in the American automotive landscape. Despite these obstacles, Chinese automakers are expanding globally, raising concerns among US officials about the long-term effectiveness of these trade barriers. Chinese automakers are adapting by planning to assemble EVs in or near the US to circumvent tariffs. US automakers recognize the complexity of potential retaliatory tariffs from China and the reliance on China's dominant EV battery supply chains. Experts warn of the potential for market saturation as China has the capacity to produce millions of autos annually.