The Biden administration expects to impose additional tariffs if Chinese electric vehicle makers try to move their production to Mexico to avoid recently announced import taxes.
President Joe Biden on Tuesday directed the U.S. Trade Representative’s office to impose a blanket tariff of more than 102% on Chinese electric vehicles, as well as new tariffs on other products including steel, aluminum, computer chips and solar cells.
But Chinese electric vehicle company BYD It previously indicated it was seeking production sites in Mexico for the Mexican market, creating a possible loophole to avoid higher tariffs.
Asked at a White House briefing about new tariffs if Chinese companies start manufacturing in Mexico, US Trade Representative Katherine Tai said: “Stay with us.”
Tai said additional tariffs would require a “separate path” from the revision of Section 301 of the 1974 Trade Act. That four-year review led to tariffs on $18 billion worth of Chinese imports announced Tuesday.
Tai said tariffs with Mexico are “something we’re talking about with our industry, our workers and our partners.”