Former President Donald Trump claims that Chinese automakers are setting up factories in Mexico and promises to impose 200% tariffs on vehicles made there. He also warns that US auto jobs could disappear if Kamala Harris wins the 2024 election, even though the auto industry has grown since President Biden took office.
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During a visit to Michigan, former President Donald Trump made bold claims about the future of the US auto industry. He said that Chinese automakers are building large factories in Mexico and that he would put 200% tariffs on any cars made there and shipped to the United States.
Speaking to a crowd in Flint, Michigan, Trump also suggested that the auto industry in the US would disappear if Vice President Kamala Harris is elected in 2024. He claimed that the work of building electric cars would go to China.
“If I don't win, you will have no auto industry within two to three years,” Trump told the audience. He said any growth in the industry under President Joe Biden and Vice President Harris was temporary. He warned that China would take over all the car factories due to the shift toward electric vehicles.
Trump’s claims come despite the fact that auto jobs have actually grown under the Biden administration. According to data from the Bureau of Labor Statistics, auto jobs fell by 0.8% during Trump’s term, but since Biden took office in 2021, they have increased by 13.6%. In August 2023, auto and parts jobs were up to 1.07 million. Additionally, auto sales grew by 2.4% in the first half of this year.
Trump also promised to make foreign automakers build their factories in the US by placing high tariffs on imported cars. He described this move as “taking candy from a baby,” saying it would force companies to relocate their production to America. Many foreign car companies, however, already have factories in the US, mostly in southern states.
Trump repeated claims that Chinese companies were setting up several factories in Mexico, though there is little evidence of this happening.
Industry experts report that while some Chinese automakers want to sell cars in the US, there are no large Chinese-owned factories currently being built in Mexico. The only Chinese auto plant in Mexico is run by a company called JAC, which makes low-cost cars from kits for sale in Mexico, not the US.
Trump also vowed to slap tariffs on cars made in other countries if those nations taxed US-made vehicles. But experts warn that tariffs often lead to higher costs for consumers in the country imposing the tariffs.
In response to Trump’s statements, Michigan Senator Gary Peters, speaking on behalf of Kamala Harris, said another Trump presidency would harm auto jobs in the US. Peters argued that Harris has a plan to bring more manufacturing jobs back to America and ensure that Michigan continues to be a leader in the auto industry.
