100% Tariff on Chinese EVs. Will it help the US market by keeping the price up for Americans? EV isn’t well adopted in the US, and trying to keep Tesla profitable is unlikely to solve the declining demand and over production.
Elon Musk and Tim Cook come to China often to meet with senior officials to keep them happy, to try hard to “protect” their firms against these geopolitical trade wars. No winners in trade wars. Until they stop coming to China, at their own will or just unwanted here, it is easier to assume that their business is still safe here.
US has very little competitive edge in EV sector. Yes, Tesla is the biggest name with top notch highly automated gigafactories to churn out cars. But we are saying it as if Japanese didn’t automate their auto sector and excelled at just-in-time manufacturing way ahead of Tesla and others.
China’s retailation can be much simpler. Just focus and work hard to keep making cars (or any products) better and cheaper. To ignore an agitated competitor and just stay the course. US is the richest and best market to make some money, but if they are unwilling to play nice, can sell to other countries and make a bit less. When US regrets and change these tariffs again, it would be too late and already lost their future markets.
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