Even with the new 100% tariff on electric vehicles imported from China, BYD would still have the cheapest EV in the US. According to a new report, BYD’s lowest-priced EV would still undercut all US automakers at under $25,000.
After discontinuing the production of vehicles powered entirely by internal combustion engines in March 2022, BYD has been at the forefront of the industry’s shift to EVs.
Honestly in my opinion it is time to remove all tariffs on EVs under 25k and let anyone who wants to fill that slot in. American car manufacturers refuse to fill the market need.
Fair enough. Not all monopolies are bad monopolies. There’s a narrow set of circumstances where a monopoly can exist within a market without making that market something other than free.
Government owned utilities for example - natural monopolies that are allowed to exist in a highly regulated state.
Monopsony can also be good for the free market in sectors with inflexible demand, such as healthcare.
But those are exceptions, and not the general rule.