Author: Al Jazeera
Published on: 03/04/2025 | 00:00:00
AI Summary:
China’s presence in the US auto industry has been limited since Trump launched his first trade war in 2018 and imposed tariffs on $380bn worth of Chinese goods. Chinese-made “light vehicles” – cars, vans, and motorcycles – represented only 0.4 percent of light vehicle sales in the USA in 2024. Starting in 2027, the US will also ban the sale of any Chinese “connected vehicle” hardware or software on alleged national security grounds. China dominates both EV manufacturing and battery production. China is also home to six of the world’s top 10 EV battery manufacturers. Trump’s tariff policies are expected to have a limited impact on Tesla. China's trade with the US has surged, surpassing China to become the US’s top trading partner in 2023. In 2024, Mexico supplied more than 40 percent of US auto parts, but many originated from Chinese factories that established operations there over the past eight years. The issue remains a point of contention, especially after Trump’s return to the White House in January. Ilaria Marzocco, a senior fellow at the Center for Strategic and International Studies, said prospects for Chinese automakers remain uncertain due to current restrictions on “connected vehicles” imposed by the Bureau of Industry and Security in January.
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