Even with the new 100% tariff on electric vehicles imported from China, BYD would still have the cheapest EV in the US. According to a new report, BYD’s lowest-priced EV would still undercut all US automakers at under $25,000.
After discontinuing the production of vehicles powered entirely by internal combustion engines in March 2022, BYD has been at the forefront of the industry’s shift to EVs.
Honestly in my opinion it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in. American car manufacturers refuse to fill the market need.
Honestly in my opinion it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in.
One essential thing bears repeating: it’s not the manufacturer that bears the cost of tariffs, it’s the customers. Or said another way, if BYD cars double in price in the US, it’s American customers who will pay the difference.
A certain presidential candidate loves to beat that drum but consistently fails to mention that the immediate effect of new tariffs is making Americans poorer.
There are some situations where imports being cheaper is due to foreign government subsidies undercutting local production and tarrifs are the wat to level the field. Frequently this gets warped into protectionism, allowing local production to have a leg up while continuing their crappy business practices, like most US auto manufacturers.
In this case the 100% tariffs is mostly the latter. It was not a thought out rate based on any kind of logic, just an emotional overreaction.
We do not need someone in office proposing reactionary, emotionally based tax policies.
foreign government subsidies undercutting local production and tarrifs are the wat to level the field.
Also, lack of labor, safety, and environmental regulations. Chinese companies literally own slaves, no worker can’t compete with free. Combine that with safety and environmental, you get cheap manufacturing.
That exists in USA’s supply chain too.
Prisoners are the most glaring omission from the Constitution’s abolition of slavery.
Undocumented immigrants are exploited even harder than other working class people living in America, and that’s the real reason that neither party will do more than give lip-service to securing the border, or even talk about going after employers who hire undocumented workers.
??? China has literally been subsidizing BYD to help it to beat out foreign manufactures and to make it competitive in foreign markets. So yeah, there may be some protectionism involved, but there is definitely an argument that China is unfairly subsidizing BYD, making it impossible for rival companies to compete.
https://electrek.co/2024/04/12/china-gave-byd-an-incredible-3-7-billion-to-win-the-ev-race/
And we’ve been subsidizing ours too. We just do it differently than straight up handing them money. (Although we’ve done that before too)
Pretty sure other incentives have been implemented for other car companies like tax rebates. Let’s not forget the fossil fuel industry being subsidized still…
Yes, that is a reason for having tariffs to offset the government subsidy. But “100% tariffs” instead of one set based on the actual impact of the government subsidies is an emotional overreaction.
allowing local production to have a leg up while continuing their crappy business practices, like most US auto manufacturers.
What US manufacturers? There is only GM, Ford, and Tesla left. People are so ignorant of the market here while simultaneously telling us all “how it is” with their strong, uninformed opinions.
The point of tariffs like that is to allow us made vehicles be the option of choice to buy.
The $25,000 ev means it’s a cheaply made car at what would have been an awesome price at $12,500, but not so great at $25,000.
American manufacturers could/would never be able to compete against a $12,500 ev sedan. So the tarriff keeps American evs bloated prices from looking too unreasonable. They can still compete against a $12,500 car being sold for $25,000
The higher price point caused by passing on the tariffs to consumers hurts the manufacturer through reduced sales.
Tariffs do hurt companies by driving potential sales elsewhere.
Or they would, if the product wasn’t still the cheapest available by 10-30% after the tariffs.
Are you really just completely ignorant of the purpose of tariffs?
Re-read what I wrote:
the immediate effect of new tarriffs is making Americans poorer.
Do tariffs work? Maybe. You also have to remember that China will retaliate and impose tariffs on US good, so overall the effects of tariffs are rarely a net benefit for anyone - which is why they’re rarely a good idea.
But the fact remains that the day after tariffs are applied, Americans lose access to cheaper goods. That’s just a dry fact.
Give me an affordable glorified golf cart so I can zip around town and run errands and then plug it in at home and do it all again in 12 hours.
Damn… Same. I was always excited for Elio which was supposed to be American made and use a moped engine that got insane gas mileage and cost 7 grand. Before their factory was bought from underneath them and they scammed everyone out of their money.
I will also take a glorified golf cart at this point.
US cars wouldn’t cost so much if the corporations would stop overloading the cars with features I don’t want. Here’s what I need: Car to go Car to charge
Here’s what I want: Radio AC/heat Electric windows
The wants are not even requirements.
I really want an OPEC (one person electric car)
Backup cameras are required by law for safety reasons. Same with ABS, seatbelts, airbags etc, but a LOT of things can be ripped out.
Heat/AC are really required as well in most places.
I’d be happy if an Android or iPhone was a REQUIREMENT. It’d run the car as an app, be a nav system, entertainment and everything, plus keep the cost down even further.
Crank window (note only one!) on the ONE door with an emergency push out window on the other side. Speakers? No. A mono, Bluetooth connected one in the headrest is plenty.
It would need to be able to cruise at 70mph, but all the other little changes would mean huge weight savings and a single person “bubble shape” would be real aerodynamic. A standard 120v plug would be all that would be even offered. Keeps coat and weight down.
The closest I can get is a Renault Twizy!
it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in.
How to force other car makers to build more reasonable EVs at more reasonable prices is an important question. But the answer isn’t “Uyghur labor camps”.
Hey I’m not discriminating, I think US and China compete very well on prison populations.
Yeah, as with most things in the US currently, prices are artificially inflated. They’re doing this because they’re trying to keep up the facade that ‘these are just the new prices cuz inflation’ when it’s painfully apparent that it’s not. They’re trying to pocket as much of our money as possible and they know if competition is introduced they’ll be forced to cut into those sweet sweet greedflation profits. I’m honestly never going to buy another US made vehicle if I can help it. My next vehicle will more than likely be foreign electric, and seeing this post just solidifies I’ve made the right decision.
And these Chinese vehicle prices are artificially deflated.
They’re trying to pocket as much of our money as possible and they know if competition is introduced they’ll be forced to cut into those sweet sweet greedflation profits.
I’m honestly never going to buy another US made vehicle if I can help it. My next vehicle will more than likely be foreign electric
I don’t really follow this line of logic. You state that companies here are artificially inflating their prices but then state that you’ll buy a foreign brand electric, which is going to be one of the exact same companies that you accuse of inflating prices. There are only a handful of US car makers, GM, Ford, and Tesla, and only 1 of those 3 put out EVs in any meaningful quantity.
What is it you’re not understanding? Honest question, no sarcasm. I’m stating I won’t buy a US vehicle, and my next will most likely be a foreign electric. Did I state something false because US manufacturers aren’t meeting a threshold of electric vehicles produced? Market is shifting to electric, which means even if they aren’t now, they’ll probably lean into electric in the coming years. Again though, no relation to either of the statements I made.
Because all those foreign manufacturers are already selling their vehicles here and for comparable prices to the tiny share of remaining US companies that still exist (GM, Ford, Tesla). If you think these high prices are just US companies being greedy, then how do you explain VW, Hyundai, Kia, Toyota, etc selling their cars for the same price?
Yes.
From your tone, it sounds like you think that’s a bad thing, yet it also seems like you’re arguing for more of the same from China.
And these Chinese vehicle prices are artificially deflated.
Deflated thanks to the buying power of the US dollar. That’s just more US economic policy rebounding on itself.
You state that companies here are artificially inflating their prices but then state that you’ll buy a foreign brand electric
Domestic automakers are running enormous administrative overhead, thanks to their focus on stock buybacks and investment in kitsch features like AI. That, plus the high cost of computer chips created by the AI/Metaverse/Crypto bubble which is, itself, feeding into buybacks and other corporate accounting tricks to boost executive and board compensation.
Chinese firms don’t have that baggage. So they don’t need to put enormous markups on their vehicles. The real cost to produce for a new car (especially a small one) is fairly low and you can still turn a big profit on volume if you can outcompete American automakers on price.
There are only a handful of US car makers
Thanks to decades of consolidation. But those car makers have millions of workers spread across dozens of factories. They command hundreds of billions of dollars in domestic capital. Its not like these are three smol beans fighting the Big Scary BYD. These are three of the wealthiest and most profitable businesses to ever exist on the planet.
And they can’t compete.
Deflated thanks to the buying power of the US dollar. That’s just more US economic policy rebounding on itself.
Deflated because China is subsidizing these vehicles directly as they’re state owned companies. What are you even talking about with the buying power of the US dollar?
Domestic automakers are running enormous administrative overhead, thanks to their focus on stock buybacks and investment in kitsch features like AI. That, plus the high cost of computer chips created by the AI/Metaverse/Crypto bubble which is, itself, feeding into buybacks and other corporate accounting tricks to boost executive and board compensation.
Really? Let’s see some names and numbers. How much did Hyundai invest in the Metaverse and crypto. How much have they spent on stock buybacks? What about Toyota, VW, BMW, GM, Tesla, Honda, and MINI. What percentage of their overhead accounts for these investments exactly? This reads like incoherent ramblings of all the things you don’t like in the world but focused at car companies.
The real cost to produce for a new car (especially a small one) is fairly low and you can still turn a big profit on volume if you can outcompete American automakers on price.
So what’s the exact cost to produce a new car?
Thanks to decades of consolidation
Uh, what? Are you referring to the decades of 1900-1910? GM has owned their subsidiary brands for over 100 years along with Ford and Tesla is a relatively new company. What consolidation?
They command hundreds of billions of dollars in domestic capital. Its not like these are three smol beans fighting the Big Scary BYD. These are three of the wealthiest and most profitable businesses to ever exist on the planet.
And China commands hundreds of trillions of dollars, which is who automakers are really competing against.
Three of the wealthiest and most profitable businesses to ever exist on the planet? This is legitimately hilarious and so false. GM was bankrupt 15 years ago. Ford has had to survive on government loans which it wasn’t able to pay back until recently and both have a market cap of ~$50B. Tesla is an outlier as they’re valued extremely high for their financial situation and what they’ve produced thus far and most people agree that they’re a bubble waiting to burst. By what metric are they the most profitable and wealthiest?
Also, aside from all this ignorance, what’s your justification for the bulk of the US auto market, made up of foreign companies, selling their cars for the same prices as these three domestic companies?
