US Senator’s Attempts to Block Cheap Electric Cars from China

The United States continues to make efforts to ban cheap electric car products from China. Recently, United States Republican Senator Marco Rubio has proposed to prevent Chinese manufacturers from avoiding US tariffs by setting up factories in ‘developing countries’ such as Mexico, Vietnam or Malaysia.

Named page PolandRubio accused Chinese manufacturers of shifting production to other countries to face high tax rates in the US. By making vehicles in developing countries where it is cheaper to operate, it allows Chinese manufacturers to ‘avoid tariffs and flood the US market with cheap goods’.

Earlier in March, Republican Senators proposed legislation to extend higher tariffs on vehicles made by Chinese manufacturers in other countries such as Mexico.

BYD is one of the trendsetters of Chinese electric car manufacturers being watched by the US. BYD has been operating its factory in Rayong, Thailand since July 2024. This factory can export BYD electric car products to various countries at more affordable prices.

Not only in Asia, BYD is also trying to expand into Europe by opening its first European EV factory in Szeged, Hungary. In the future, BYD plans to have two assembly facilities on the blue continent.

Watching BYD’s very aggressive moves is sure to leave the United States and its allies irritated. In May, for example, US President Joe Biden announced new tariffs on goods made in China, including electric vehicles that quadrupled the tariffs from 25% to 100%

According to reports Reutersthis includes new tariffs of 25% on lithium-ion batteries, minerals and components. Tariffs for electric vehicles will come into effect on September 27, while tariffs for all other devices will come into effect on January 1, 2026.

In addition to the US, Canada announced earlier this month that it would impose 100% tariffs on electric vehicles made in China. A similar move was followed by the European Union as well, which will apply additional tariffs of up to 38.1% on electric vehicles made in China and exported to the EU.

(quote/admin)