4 min read.Updated: 16 Oct 2022, 10:32 PM ISTAnjani Trivedi, Bloomberg
Localizing car production isn’t as easy as it was back in the 1980s
In the 1980s, as Japanese cars flooded the US auto market, the Ronald Reagan administration found a way to limit them with tariffs and import quotas. It resulted in the likes of Toyota setting up factories in America. They churned out millions of vehicles that led to the proliferation of an efficient auto-supply chain and employed thousands of workers. If the US plays it right, this could happen again—sans the tariffs—as it tries to build its own electric-vehicle supply chain independent of the world’s big factory floor, China.