DETROIT – Former President Donald Trump recently made controversial claims about Chinese automakers setting up large factories in Mexico. During a visit to Michigan, a key state in the auto industry, Trump vowed to impose 200% tariffs on any vehicles produced by these theoretical plants and shipped to the United States.

Trump also warned that if Democratic Vice President Kamala Harris were to be elected, the U.S. auto industry would suffer, with electric vehicle production moving to China. However, data shows that auto industry employment has actually increased since President Joe Biden took office in January 2021, following a decline during Trump’s first term.

Despite these facts, Trump boldly claimed that a loss in the upcoming election would result in the collapse of the U.S. auto industry within a few years. He emphasized the potential threat of Chinese dominance in electric car manufacturing.

In an effort to prevent this scenario, Trump proposed imposing tariffs on foreign automakers to incentivize them to establish factories in the U.S. However, many foreign automakers, including Chinese companies, already operate manufacturing plants in various states across the country.

Contrary to Trump’s statements, auto industry employment saw a significant increase under Biden’s administration, with a rise in auto and parts jobs since January 2021. Additionally, auto sales have shown growth in the first half of the year.

While Trump’s claims about Chinese-owned factories in Mexico raise concerns, industry experts suggest that there is limited evidence of large-scale Chinese auto manufacturing plants being constructed in the country. Only one small Chinese-owned assembly factory currently operates in Mexico.

Trump’s proposition to impose tariffs on vehicles from other countries as a retaliation strategy may have repercussions on consumers. In response, the Harris campaign reaffirmed their commitment to protecting auto jobs and promoting domestic manufacturing.