It’s Hard to Argue Against Tariffs on Chinese Automobiles

Commentary Normally, I am not an economic protectionist, but as America continues to grapple with attacks from multiple sides, safeguarding our industries should be a primary concern. Mexico, one of the world’s largest automobile producers, exports 90 percent of its autos (mostly to the United States). While it is understandable that American automakers utilize the Mexican market for automobile manufacturing and assembling (even Tesla has indicated they may build a gigafactory in Mexico), the surge in Chinese auto manufacturing in Mexico is a troubling trend. In recent years, Chinese manufacturers have established factories in Mexico, investing tens of billions in the country to exploit the U.S.-Mexico-Canada Trade Agreement. Currently, the tax incentives for electric vehicles favor American automobile manufacturers, but automobiles and components manufactured in Mexico are eligible for preferential treatment under the U.S.-Mexico-Canada trade agreement, so long as at least 50 percent of vehicle components are manufactured in North America....