Source: The Next Web
Rather than compete against Chinese EV manufacturers facing 125% cumulative tariffs and a proposed Senate ban, Detroit's incumbent automakers may find it strategically rational to license technology, joint venture, or acquire Chinese EV startups to access their superior battery supply chains and manufacturing economics. The tariff regime creates a paradox: it protects Detroit's market share in the short term while locking American consumers out of cheaper vehicles and pushing US automakers toward accepting minority stakes in Chinese-owned operations rather than building competitive EV platforms domestically.