"China's electric car industry is on track to swallow the world. But there's one piece of the puzzle that often gets overblown when people discuss the ramifications of these cars potentially being sold in the United States someday. That $10,000 BYD you keep hearing about? Here in the U.S., there's zero chance it would be so astonishingly cheap, for better or worse. There are a few reasons for that."
"And then there's the biggest factor: tariffs. Today, the U.S. imposes duties of over 100% on Chinese-made cars in what amounts to an effective ban. The federal government's line is that China's lavish government subsidies have created far too much car-building capacity, and that it's not America's job to let artificially cheap imports steamroll into town. It's difficult to imagine those walls coming down in a major way anytime soon."
China's electric-vehicle industry is rapidly expanding and achieving very low consumer prices through aggressive domestic price competition. Ultra-cheap models like a purported $10,000 BYD would not reach U.S. prices because of unsustainable price wars, higher U.S. safety and regulatory requirements, and punitive tariffs that exceed 100%, effectively blocking most Chinese-made cars. U.S. tariffs are justified by concerns about Chinese government subsidies and excess manufacturing capacity. Tariff barriers are likely to remain, providing relief to domestic automakers. However, Chinese EV manufacturers often lead in technology, prompting recommendations that competitors prioritize technological development over focusing only on cost.
Read at InsideEVs
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