U.S. Urged To Block Cheap Chinese Auto Imports From Mexico

The US government should block the import of low-cost Chinese autos and parts from Mexico, a US manufacturing advocacy group said, warning that they could threaten the viability of American car companies, as reported by David Shepardson for Reuters.

Vehicles and parts produced in Mexico can qualify for preferential treatment under the US-Mexico-Canada trade agreement, as well as qualifying for a $7,500 EV tax credit. I Photo: Chery International Linkedin

"The introduction of cheap Chinese autos - which are so inexpensive because they are backed with the power and funding of the Chinese government - to the American market could end up being an extinction-level event for the US auto sector," the Alliance for American Manufacturing (AAM) said in a report.

The group argues that the US should work to prevent automobiles and parts made in Mexico by companies headquartered in China from benefiting from a North American free trade agreement.

"The commercial backdoor left open to Chinese auto imports should be shut before it causes mass plant closures and job losses in the US," the report said.

Vehicles and parts produced in Mexico can qualify for preferential treatment under the US-Mexico-Canada trade agreement, as well as qualifying for a $7,500 electric vehicle (EV) tax credit, the report noted.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem