4 ms·
Who says imports aren't allowed?
by paxys 3y ago
Who says imports aren't allowed?
- 4pkjai 3y agoThey are allowed, but the US has a 27.5% tarrif on Chinese EVs.
- autoexecbat 3y ago$13k instead of $10k is still great for a tiny car!
- boringg 3y agoUS protectionism would like a word with you.
- seanmcdirmid 3y agoChinese protectionism would also like a word. Remember these tariffs were originally setup between the US and China in 2006 to protect China's car market, not the USA's. See https://faculty.econ.ucdavis.edu/faculty/dswenson/ChinaCarParts_CESIFO-2012.pdf https://faculty.econ.ucdavis.edu/faculty/dswenson/ChinaCarPa... > Here, the bilateral agreement noted the expectation that by 2006 China’s import tariff on assembled cars was to be reduced from its pre WTO level of 80% or 100% to 25%, while the diverse rates of tariff on auto parts were to be reduced such that the average tariff on auto parts declined to 10%. That was a reduction from the 80-100% it was previously, so 25% was a huge win back then, but it was (and is) still a mostly protected car market.
- boringg 3y agoI'm not saying anything about the Chinese protections merely the US protections.
- seanmcdirmid 3y agoThe US and Chinese protections were negotiated at the same time in 2006: China wanted a 25% tariff for automobiles imported into China from the USA (down from 80-100%), the USA said, OK, but we will apply the same to your cars. That's why it was negotiated, if China offered no tariff, the USA would have jumped at that. Almost all tariffs are reciprocated, that's just how this game works. It is only an accident in history that these tariffs now protect the USA rather than China.
- leereeves 3y agoImports have to satisfy all the US regulations. To quote from a link someone else posted: > Most Chinese cars haven’t been engineered with US safety regulations in mind; just going through those protocols is an expensive and elaborate process.
- zalthor 3y agohttps://www.bloomberg.com/news/articles/2023-09-22/why-can-t-americans-buy-cheap-chinese-evs https://www.bloomberg.com/news/articles/2023-09-22/why-can-t...
- paxys 3y agoThere are plenty of small cars made outside of China. Why do you think not a single auto manufacturer worldwide bothers to export their best selling models to the US? The market here wants SUVs and trucks, not $15K subcompacts.
- baggy_trough 3y agoWe don't know what the market wants, because the government has made it very difficult to supply such a subcompact.
- paxys 3y agoOutside of Chinese-made vehicles the US has probably the most open auto import market in the world. Most manufacturers enjoy a 2.5% tariff, which is a joke, and not reciprocated anywhere in the world. All these foreign manufacturers are selling $25-50K+ cars just fine (over 4 million of them every year in fact). It's the US market that is rejecting lower priced cars.
- baggy_trough 3y agoSafety and other regulations still apply.
- paxys 3y agoEuropean safety and environmental standards are much higher than here.
- ahahahahah 3y ago
- alwa 3y agoThe article cites the Alliance for American Manufacturing, for one, as warning that if these Chinese-state-subsidized vehicles are permitted for import without trade adjustments correcting for the distortionary effect of the subsidies, then unsubsidized non-Chinese manufacturers will be unable to compete and have to fold. As the article quotes Elon Musk in his capacity as Tesla guy: > “The Chinese car companies are the most competitive car companies in the world,” Musk said during the call. “So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established.” > “Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”