CHINA'S electric vehicle industry including BYD are rushing to ship vehicles to Mexico and Brazil in preparation for tariff hikes and other trade restrictions, reports Nikkei Asia.
That comes as Washington announced 100 per cent tariffs on Chinese EVs a move that is expected to be followed by more trade actions aimed at electric vehicles from China by the US and its allies.
The rush-transportation of EVs from China to Brazil and Mexico began in March and will continue into June, a source in the shipping industry familiar with the situation told Nikkei Asia.
Brazil reinstated tariffs on electric vehicles this year, having exempted them since 2015. Fully electric vehicles faced a 10 per cent tax from January that will increase to 18 per cent this July and 35 per cent in July 2026.
"Shipping container prices for the China to Brazil route have risen between four - and sixfold since late March. The container only cost about US$1,500 earlier this year and now is well above $6,000," said the source.