Donald Trump threatens 100% tax on Chinese vehicles made in Mexico

Former US President Donald Trump is threatening to impose 100% tariffs on all vehicles made in Mexico by Chinese companies that cross the border if he is re-elected in November, according to what Bloomberg reports.

At a rally speech in Dayton, Ohio, last Saturday, the Republican candidate took direct aim at Chinese President Xi Jinping, warning him that his "big monstrous assembly plants you're building in Mexico" won't sell vehicles to American consumers.

Earlier in March, Trump had raised the idea of tariffs of 50% on Chinese vehicles and up to 60% on all other products from China, saying he had no fear of retaliation. By now raising 100%, he's aiming for a whole new level of protectionism.

In his most recent speech, Trump also used the phrase "bloodbath" to describe the harm the Biden administration's lax approach to the Chinese threat would do to the U.S. economy.

Chinese manufacturer BYD (Build Your Dreams) is planning to build a plant in Mexico. The news will be confirmed later in 2024. The aim is to serve mainly the Mexican market.

As we reported at the end of February, BYD Executive Vice President Stella Li denied rumors of a U.S. breakthrough during an interview with Yahoo Finance, calling the U.S. market "too complicated when it comes to electric vehicles" among other things because of the Inflation Reduction Act (IRA).

Li said that the US and the rest of the auto industry are "a little too scared of Chinese competition".