[Martinjlm]

Originally Posted by snizzle

I don't necessarily know the answer, but why can't we just compete. Cost of labor (UAW)? Material sourcing? At best a tariff feels like a lazy way to buy time for our domestic makes that are behind. It's also just an admission that we have failed and are outpaced. However, it's the one thing both Biden and Trump agree on so there's that.....

Because everybody’s got their thumb on the scale. A lot of people in this thread complain that IRA provides incentives for people to buy EVs. Some of those same people say they would buy an inexpensive Chinese EV if it was sold here. What they don’t know or account for is that the Chinese government incentives for EV manufacturers make IRA look like chump change. 10s of billions of dollars. It allows Chinese manufacturers to sell EVs in China at under $10k equivalent to build up a manufacturing economy of scale. Then those same companies sell those same vehicles in Europe for double the price, but still below European OEM prices. A much more integrated approach to government subsidy.

The purpose of the IRA is to provide incentives to buyers already intending to buy EVs to buy the ones with more North American content (more jobs). The Chinese subsidies go straight to the manufacturers and put them in a more advantageous position to export cars, not just EVs. Don’t believe me? Take a trip to Europe or Mexico. You won’t be able to avoid the billboards advertising low cost Chinese cars.