this post was submitted on 01 Jul 2026
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Electric Vehicles
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I wonder if we tariff Chinese EVs on the difference between labor rates, what would that look like? And how much of the difference is something like socialized medicine? Most foreign labor doesn't have to spend a significant portion of their paycheck for health insurance.
According to this I found from a quick search: https://www.motor.com/2025/05/new-analysis-examines-labor-cost-per-vehicle-amidst-changing-automotive-landscape/
If you put a flat $1000 tariff on Chinese EVs it would more than cover the difference in labour costs.
And it stands to reason, car manufacturing is very automated. Of course you could attempt to factor in the labour costs to build the machines and make the materials used to build the cars too, but you'd need detailed information of what goes into a car, which I don't know.