US suggests possibility of penalties if production of Chinese electric vehicles moves to Mexico

By JOSH BOAK
Associated Press

WASHINGTON (AP) — The Biden administration is suggesting the possibility that new penalties could be put in place if the Chinese makers of electric vehicles try to move their production to Mexico to avoid newly announced import taxes. President Joe Biden on Tuesday directed the U.S. Trade Representative to impose a a total tariff in excess of 102% on Chinese EVs. He also directed new tariffs on other products including steel, aluminum, computer chips and solar cells. But Chinese EV company BYD has previously indicated that it was looking at factory sites in Mexico for the Mexican market. That could make Mexico a back door for potentially selling goods into the U.S. U.S. Trade Representative Katherine Tai says to “stay tuned” for the possibility of further action.