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The Biden administration is suggesting the possibility that additional penalties could be put in place if the Chinese makers of electric vehicles try to move their production to Mexico to avoid newly announced import taxes.

President Joe Biden on Tuesday directed the office of the U.S. Trade Representative to impose a total tariff in excess of 102% on Chinese EVs, as well as directing new tariffs on other products including steel, aluminum, computer chips and solar cells.

But Chinese EV company BYD has previously indicated that it was looking at factory sites in Mexico for the Mexican market. That raises the possibility that Chinese companies could use Mexico as a backdoor into the U.S. market.

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