Donald Trump said he would hit cars made in Mexico by Chinese companies with a 100 percent tariff, double the levy he has previously said he would put on automobiles made south of the US border.
Trump addressed Chinese President Xi Jinping directly during a rally speech in Dayton, Ohio, on Saturday when threatening the tariffs.
"Those big monster car manufacturing plants you are building in Mexico right now and you think you are going to get that - not hire Americans and you're going to sell the car to us, no," Trump said. "We are going to put a 100 percent tariff on every car that comes across the lot."
President Joe Biden's campaign criticized the remarks, pointing to the attack by rioters on the US Capitol on January 6, 2021, after Trump lost his first reelection bid.
Earlier this month Trump threatened a 50 percent tariff on Chinese cars. He has also proposed tariffs of as much as 60 percent on all Chinese goods and 10 percent on goods made anywhere in the world. He said he is not worried about retaliatory measures from China or other countries.
"You screw us and we'll screw you," he said. "It's very simple, very fair."
China's BYD (1211) plans to set up an electric vehicle factory in Mexico, according to reports by Nikkei, which cited the company's Mexico head, as the EV maker aims to establish an export hub to the US.
BYD, known for its cheaper models and a more varied lineup, recently overtook its biggest rival Tesla to become the world's top EV maker in terms of sales.
BYD has launched a feasibility study for the Mexican plant and is currently negotiating with officials over terms, including the factory's location, according to the report.
Donald Trump’s threat of 100 percent taxes on Mexico-made Chinese cars comes amid news that BYD wants to set up a plant in that country. Reuters