Trump pledges tariffs and repeats false claim of Chinese automakers building big Mexican factories

Electric vehicles, Auto industry, Politics, 2024 United States presidential election, Business, Article

DETROIT -- Former President Donald Trump on Tuesday repeated false claims that Chinese automakers are putting up large factories in Mexico, vowing during a stop in the automaking state of Michigan to slap 200% tariffs on any vehicles the unbuilt plants make and ship to the United States.

Trump also asserted during an event in Flint that if Vice President Kamala Harris is elected in November, the U.S. auto industry will cease to exist, as electric vehicle production will shift to China.

This statement comes despite the fact that auto manufacturing employment has increased since President Joe Biden took office in January 2021, following a decline during Trump's first term.

“If I don't win, you will have no auto industry within two to three years," Trump stated, dismissing any growth under Biden and Harris as temporary. “You will not have any manufacturing facilities. China is going to take over all of them because of the electric car.”

He told the crowd he would force foreign automakers to build factories in the U.S. by imposing tariffs on imported autos, stating it “will be like taking candy from a baby.”

Foreign automakers already operate multiple U.S. factories, primarily in southern states.

The number of auto jobs slightly declined by 0.8% during Trump's presidency, reaching just over 949,000 in January 2021 when he left office, according to the Bureau of Labor Statistics. Since Biden took office that month, auto and parts jobs saw an increase of 13.6%, reaching 1.07 million in August, demonstrating no signs of the industry disappearing. Auto sales were up 2.4% in the first half of this year.

Trump asserted that his tariffs would make Chinese vehicles manufactured in Mexico uncompetitive in the U.S. market, thereby compelling automakers from China and other nations to establish factories in the United States.

“These factories are owned and built by China in Mexico, and several are being constructed right now,” Trump stated, referring to Chinese factories.

While some Chinese automakers have expressed aspirations to sell in the U.S., industry analysts maintain that there are no large Chinese-owned automotive factories under construction in Mexico. There is only one small Chinese auto assembly plant operating there. It is operated by a company called JAC, which produces inexpensive vehicles from kits for sale within Mexico.

Trump also pledged to impose tariffs on vehicles produced in other countries if those countries levied taxes on U.S.-made vehicles. However, tariffs often result in consumers in the imposing country bearing the burden of higher prices.

A message was left on Tuesday evening seeking a response from the Harris campaign.