Nio's and BYD's plans to export EV to the US thwarted by New Tariffs

Voice of America:

On the same day Biden announced the new tariffs, Chinese automaker BYD, the world's largest electric vehicle producer, unveiled the Shark, a midsize hybrid-electric pickup truck, in Mexico. In February, BYD said it was looking for a location in Mexico for its factory. A Mexico-made EV with sufficient North America-sourced parts could qualify for tariff-free entry into the U.S. market under the 2020 United States-Mexico- Canada Agreement, or USMCA. The administration said Beijing's move to circumvent tariffs via a U.S. free trade partner is "a pattern" of "serious concern" that it's investigating. Blocking Beijing's circumvention effort can be done by amending the USMCA or through supplemental agreements, or an investment screening mechanism separate from the USMCA, she told VOA. "I'm sure there are other alternatives as well that are being explored."

InvestorPlace & CNBC:

Last year, Nio USA CEO Ganesh Iyer noted that he would like to see Nio expand to North America by 2025. However, he later backtracked and said that he was only “debating” the decision. Iyer also revealed that Nio was open to partnerships in the U.S. while adding that an expansion would require large infrastructure investments.

Chinese electric car startup Nio is adjusting its approach to global markets in light of geopolitical developments, CEO William Li told reporters Thursday. The company will still focus on China, and will persist in its initial aspiration to be a global company — "but our approach will have some change," Li said in Mandarin, translated by CNBC.

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