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this post was submitted on 20 May 2024
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I would think that the winning move would be to impose enough tariffs to offset the foreign government subsidies, yet still promote some competition.
The government could also 100 percent fund battery research; Put a government owned company out there to make a floor in the market (5 person hatchback with minimum amenities); Give us more than 7,500 in EV rebates on a select few models; Change CAFE standards so bigger isn't automatically better; etc...
There's a lot we could do. We instead chose the most reductive and protectionist route possible. And even then Volvo (Owned by Greely) says they may be able to get a refund on the entire tariff because of the other models they produce in the US.
Definitely need more subsidies or grants for domestic research. Though I don’t see the government owned company idea working mainly due to how capitalism is implemented here. The government tends to not directly compete with private entities.
Fully agree with clamping down (via higher taxes or something similar) on the giant vehicles and the loopholes they can abuse today.
Oh yeah, Americans would riot before buying basic goods from the government. Still it's something that would be legal and is an option. Even floating the idea seriously could cause the auto makers to remember how to make those minimum amenity hatchbacks.