It was predictable [SEE HERE] and it happened exactly as predicted.
BlackRock investment firm writes the regulatory and economic policy for Joe Biden’s administration. That’s the quid-pro-quo that maintains the Biden political financial operation. All of DC know it. No one does not know. The one’s who claim they do not know about it are all pretending. Republicans take the background BlackRock bribes and pretend.
BlackRock positioned massive investment assets inside Chinese auto manufacturers, MG, BYD, and Chery. The three Chinese companies are in the process of moving North American auto manufacturing to Mexico, specifically to make EV’s. The Chinese EV’s made in Mexico will come into the U.S market tariff free under the USMCA trade agreement. China and BlackRock will make billions.
Today Joe Biden announced a series of tariffs against China in the EV industry. [SEE HERE] The Chinese EV’s are not being made in China. The tariff regime is a farce a total joke.
Biden might as well be announcing tariffs on Chinese swimming pools flown into the USA via hot air balloon. There will be more Chinese swimming pools delivered from China than Chinese EV’s. The Chinese EV’s come from Mexico. The tariff is fake.
WHITE HOUSE […] To further encourage China to eliminate the acts, policies, and practices at issue, and to counteract the burden or restriction of these acts, policies, and practices, the Trade Representative shall modify the two actions to increase section 301 ad valorem rates of duty for the following products from China:
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- Battery parts (non-lithium-ion batteries): Increase rate to 25 percent in 2024;
- Electric vehicles: Increase rate to 100 percent in 2024;
- Lithium-ion electrical vehicle batteries: Increase rate to 25 percent in 2024;
- Lithium-ion non-electrical vehicle batteries: Increase rate to 25 percent in 2026;
- Natural graphite: Increase rate to 25 percent in 2026;
- Other critical minerals: Increase rate to 25 percent in 2024; (read more)
None of this stuff is coming from China. It is all coming from Mexico via transnational shipping and Chinese manufacturing in Mexico. [Check Date]
On the EV issue, this tariff approach is politically duplicitous by Biden against the backdrop of massive investment in Mexico by the three largest Chinese EV automakers. Last December the three Chinese auto manufacturers, MG, BYD, and Chery, announced they were going to spend billions building new EV manufacturing plants in Mexico. Each Chinese auto manufacturer was going to spend between $1.5 to $2.0 billion.
Those Mexican built Chinese EV’s would pass into the USA market under current USMCA trade rules and regulations, as long as they technically meet the material origination rules. This can make tariffs against the Chinese imported EVs a moot point, because China will be making them in Mexico (North American trade agreement).
One of the reasons President Trump said the U.S. auto industry would suffer a “bloodbath,” is specifically because the current Chinese auto companies are targeting these EV’s in the $10,000 or less range. If you want to see what it looks like when cheap Chinese EV’s start to flood a consumer market, visit Russia – the western sanctions have only increased this flow. I can see it clear as day.
China plans to pump out thousands of cheap, what I would consider semi-disposable, electric cars into the USA market. That’s why they have invested so heavily in Mexico. Keep in mind, Blackrock (a Biden benefactor investment firm) is enmeshed with this Chinese move.
This tariff claim by the Biden administration on “import Chinese EV’s” is optics only for political benefit. Whereas the 100% tariffs proposed by Donald Trump specifically target Chinese EV’s made in Mexico.
Stand back and elevate your thinking on this Chinese EV issue; the substance of it is a consequence of a much larger dynamic. It is somewhat of a self-fulfilling prophecy.
There is a cleaving underway, a dedollarization that continues in global trade. Nations are no longer relying (dependent) on dollars as the baseline for trade parity; they are determining their own nation to nation trade valuations outside the use of the dollar as a benchmark.
The result of this dedollarization taking place is massive inflation inside the USA that continues as the dollar (yellow zone) is weakened against the increasingly non-dollar-aligned world (grey zone). The frequency of dollar use is lessening as alternatives are being used.
Trade into the yellow zone still requires a benchmark of dollars, but bilateral trade within the grey zone increasingly does not. This is the root of the global financial and economic cleaving. Mexico is not stupid.
China is trying to position their transportation sector (auto, planes, trains and mass transit manufacturing) as Apple manufacturing is to cell phone use. Some of these disposable Chinese electric vehicles are actually impressive, which makes sense when you consider that China steals the engineering and design elements from knuckleheaded western corporations who use China for industrial manufacturing (see Tesla etc).