US automobile industry threatened by prospects of Chinese EVs entering the country through the Mexican border

economictimes.indiatimes.com:

Mexican border using the rules framed under the US-Mexico-Canada Trade Agreement. The average price of an EV vehicle manufactured in the US is $55,000 and the Chinese vehicles are priced at half this rate. The US has many options to tackle what may be termed as an “unfair trade practice”. There are several economic and social consequences, the US will need to deal with. The primary concern is related to job loss. The American automobile industry is threatened by this.

Chinese EVs:

Last year, China introduced an EV called the Sea Gull which is sold for $12,000 in China and $21,000 in four Latin American countries. The average price of a car manufactured in the US is $55,000. The low price of the Chinese EV will eventually attract higher demand for the product. This will ensure closure of factories in the US, loss of employment opportunities for Americans and a decline in the overall economic activities in the US. It is expected to lead to severe disruptions in the US markets and in the automobile industry.

Any business cannot survive on low costs for too long. The Chinese have a different business model. They are funded by their government in the form of subsidies which will help them retain a business edge. The Centre for Strategic and International Studies found that the Chinese government had funded the EV industry to the tune of $130 billion from 2009-2021.

Methodology:

The Chinese are taking advantage of the US-Mexico-Canada trade agreement which was