Mexico "terminates" BYD's incentives! Announcement: China and other countries should not "open the back door"

Smart Mobility has learned that Mexico will stop its incentives for Chinese automakers under pressure from the United States. At the last meeting between senior government officials and Chinese automaker BYD, Mexico explained that it would not offer incentives and that all meetings with Chinese automakers would be suspended in the future, according to sources who spoke on condition of anonymity.

According to sources, the decision was made under pressure from the Office of the United States Trade Representative (USTR), which sought to exclude Chinese automakers from NAFTA. And the USTR has declared that the U.S.-Mexico-Canada Agreement (USMCA) should not "provide a back door for China and other countries that may seek access" to our markets without paying tariffs.

So far, industry representatives have asked the White House to take further action to make Chinese automakers lose their market competitiveness. Senator Marco Rubio proposed legislation last month to raise import tariffs on electric vehicles in China. Mexico has also become a new focus for the industry, with companies like BYD building factories there and sourcing 75 percent of their cars' core components from North America, allowing them to avoid tariffs altogether.