China has been quietly driving an electric vehicle revolution in many parts of Africa, creating jobs and supporting a transition away from fossil fuels. A ra...
For any country without an automotive industry this is a huge win. They get to decarbonise, decrease their dependence on oil imports and get cheaper and cleaner vehicles. For countries with an automotive industry, it’s a huge challenge but tariffs are definitely not the answer.
Tariffs are a fine answer - if coupled with cheap, domestic EV production. From a Keynesian point of view (I am not, I am a Communist), the right tack would be moderate tariffs - high enough to protect domestic industries and adjust for lower production costs overseas, but low enough that domestic producers still must compete.
The issue with the current track is that the very-high tariffs are too high - domestic producers are not incentivized to even enter the budget EV market, since they can continue to sell budget ICE autos and luxury EVs to those who care. They make more profit if they only sell highly marked-up luxury EVs, so the extremely-high tariffs benefit only auto industry shareholders - not the American people.
For any country without an automotive industry this is a huge win. They get to decarbonise, decrease their dependence on oil imports and get cheaper and cleaner vehicles. For countries with an automotive industry, it’s a huge challenge but tariffs are definitely not the answer.
Tariffs are a fine answer - if coupled with cheap, domestic EV production. From a Keynesian point of view (I am not, I am a Communist), the right tack would be moderate tariffs - high enough to protect domestic industries and adjust for lower production costs overseas, but low enough that domestic producers still must compete.
The issue with the current track is that the very-high tariffs are too high - domestic producers are not incentivized to even enter the budget EV market, since they can continue to sell budget ICE autos and luxury EVs to those who care. They make more profit if they only sell highly marked-up luxury EVs, so the extremely-high tariffs benefit only auto industry shareholders - not the American people.