There is truth to these claims. But what is the long-term solution? When products are cheaper or better, trade barriers have historically become increasingly costly and difficult to sustain. Consumers complain. Entrepreneurs look for workarounds. Politicians flirt with buckling. Indeed, in January, Trump, who often follows political winds, suggested that he might be ok with Chinese car companies entering the U.S. market if they build local manufacturing.
Powerful well-organized coalitions are one way to hold back foreign competition. And, to that end, policymakers, executives, and think tank experts speak from a shared script today, citing the aforementioned concerns. So far they’ve been successful with China as one rare area of bipartisan agreement.
But there’s a deep disconnect between that elite consensus view on EVs and the concerns of the broader American public. Polling from the University of Chicago last year showed that Americans would prefer to buy an electric vehicle made in the U.S. But, the bigger the price difference, the more their patriotism erodes. At a $5,000 difference, more respondents say they would prefer a Chinese EV over a more expensive American car. The persistent inflation likely to result from the fallout of the Iran war, including from high fuel prices, is likely to exacerbate this challenge.