America’s auto industry has grown concerned that Chinese carmakers may be preparing to set up shop in Mexico to exploit North American trade rules. The Chinese could then send ultra-low-priced electric vehicles streaming into the United States, devastating the U.S. auto industry, which envisions American EVs as the core of their business in the coming decades. To defuse the threat, the U.S. does have a range of options that it might be forced to deploy. Whatever steps the U.S. government might take, though, would likely face legal challenges from companies that want to import the Chinese EVs.
