Following Europe, opinions have been expressed in the U.S. that securing competitiveness is a priority rather than regulating Chinese electric vehicles. It is argued that it is not the right way for the Biden administration to increase tariffs on Chinese electric vehicles to 100%.
Jameson Dow, a journalist who specializes in EVs and sustainable energy, pointed out that the U.S., which had previously thought that Japan’s steel and automobile industries were unrivaled in the 1970s, mobilized tariff regulations but failed to stop them.
At the time, most American automakers produced huge gas-guzzling vehicles. On the other hand, Japanese automakers took advantage of the crisis by quickly introducing smaller, more fuel-efficient vehicles to the U.S. when the environmental movement began to gain momentum and emissions regulations began to be implemented.
To prevent this, automakers used various methods, including lobbying the government. So, instead of exporting Japanese vehicles, Japanese automobile companies chose to encroach on the market by building factories in the U.S., and as a result, Japan dominated the global automobile industry in the late 20th century.
Jameson Dow pointed out that China is the new Japan, that the U.S. and Japan are making slow progress toward electric vehicles, and that eventually low-priced, good Chinese products will have no choice but to encroach on the market.
He emphasized that while there were many cases where tariffs failed to stop Japan, there were many other cases where they were ineffective or had strange side effects, and economists generally agree that they are not a measure to help American industry.
He also pointed out that the current Chinese regulations are ultimately due to the US presidential election. This trade policy is not motivated by considerations of what is best for the auto industry or the U.S. but rather is a populist way to use Sinophobia to scapegoat America’s main geopolitical rival for the various social ills occurring within the U.S.
He has said both Trump and Biden are committing wrong policies and what’s needed now is better vehicles, not tariffs.
“Even if we can’t control the price of Chinese-made small electric vehicles, the way to solve this is through smart industrial and materials policies (which China has been working on for years, and we are just getting started), and through targeted subsidies for new and important industries. (Republicans want to get rid of it, but we are doing it), and perhaps redirect the tax cuts that currently encourage larger vehicles. The idea is to stop encouraging the expansion of production of huge gasoline-guzzling vehicles and instead encourage appropriately sized electric vehicles. Moreover, EPA (Environmental Protection Agency) should establish regulatory policies tailored to industry conditions rather than harsh environmental regulations.”
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