Donald Trump's Policies Make BYD Reluctant to Invest in Mexico

KatadataOTO – BYD continues to accelerate to market electric cars. A number of countries are their destination.

The Chinese manufacturer even wants to establish factories in several overseas locations.

One of them is Mexico, but BYD's plans are not going smoothly.

According to circulating news, the manufacturer from the Land of the Bamboo Curtain has postponed plans to establish a production facility in Mexico.

Photo : BYD

"Due to geopolitical shifts and concerns over United States (US) trade policy," wrote Carscoops, Tuesday (08/07).

Stella Li, Executive Vice President of BYD, said that Trump's tariff policy made them hesitant to invest their money in Mexico.

Therefore, they are reconsidering the plan to build a factory there.

"Geopolitical issues have a major impact on the automotive industry," said Stella Li.

Nevertheless, BYD does not want to stop there. They continue to move forward to find a location for a new factory.

As was recently done in Brazil. BYD chose the Land of Samba to establish a production facility.

"Now everyone is rethinking their strategies in other countries," she continued.

BYD is also waiting to see the continuation of the United States import tariffs policy implemented by Donald Trump.

"We will wait for further clarity before making a decision," Stella Li affirmed.

On the other hand, the Chinese government had also delayed approval for BYD's production in Mexico.

This was due to concerns that various BYD electric car technologies could be leaked to the United States.

For your information, BYD has started the production process of their Electric Vehicles (EV) at a new factory located in Camacari, Brazil.

This decision is believed to strengthen their position in the global electric four-wheeled vehicle market.

The BYD factory in Brazil is claimed to have a production capacity of up to 150 thousand units per year.

United States Import Tariffs

For your information, the implementation of the United States import tariffs was postponed to April 2025.

Photo : KatadataOTO

However, this one Donald Trump policy will reportedly be re-implemented on August 1, 2025.

China itself is one of the main targets with tariffs of more than 100 percent. China is said to have until August 12 to reach an agreement with Washington.

If negotiations fail, Donald Trump will reactivate a series of import restrictions previously imposed during the tariff war throughout April and May.