The U.S. government under President Joe Biden is apparently planning new measures to protect the domestic electric vehicle industry around Tesla and Rivian from the increasing competition by Chinese manufacturers such as BYD or NIO.

U.S. Treasury Secretary Janet Yellen Emphasized the Importance of Success for American Electric Car Makers During a Visit in Kentucky and Expressed Concerns Over the Growing International Market Share of Chinese Companies.

The particular activities of BYD in Mexico raise concerns that Chinese vehicles could enter the US market through the back door, as the USA currently imposes high import tariffs on Chinese electric cars.

Tesla CEO Elon Musk had previously demanded trade barriers against Chinese competitors to avoid a competitive disadvantage for US manufacturers.

In addition, the U.S. Department of Commerce is investigating whether the data collection and transmission by Chinese electric vehicles could pose a threat to national security, which could lead to far-reaching restrictions.

The U.S. Government Faces the Challenge of Strengthening the Domestic Electric Vehicle Market Without Straining International Trade Relations.