Leaders of six major auto trade groups wrote a letter to the president asking him to ban Chinese automakers from the U.S. market. Not regulate them harder. Not impose stricter tariffs. Ban them entirely. Because apparently when you can't compete on price or innovation, the move is to eliminate the competition through executive order.
The timing here is flawless. Xi Jinping is about to visit and these guys decided the best diplomatic strategy was to hand Trump a letter that says "please tell this man's country they're not allowed to sell cars here anymore." Real smooth. Nothing greases the wheels of international trade negotiations like a preemptive f*ck you from Detroit's finest lobbyists.
Six trade groups had to join forces for this. One wasn't enough. Two couldn't get it done. They needed half a dozen industry associations to collectively muster the courage to say "we're scared of BYD." That's the equivalent of six guys holding hands before asking their boss for a raise. Except the raise is a government-enforced monopoly and the boss has nuclear weapons.
The letter doesn't ask for better manufacturing processes. Doesn't propose American innovation. Doesn't suggest matching Chinese efficiency or battery technology. Just asks the president to make the scary foreign cars go away. It's the corporate equivalent of a child closing their eyes and believing the monster disappeared.
Retail traders will see this headline and think it's bullish for American auto stocks. They'll buy calls on Ford because six trade groups signed a letter. They'll ignore that those same groups have been signing letters for forty years while Toyota ate their lunch, Honda stole their dinner, and Hyundai is currently rifling through their fridge. But sure, this letter will definitely stop the Chinese.
Protectionism is just the participation trophy of capitalism.
Photo by Vitali Adutskevich on Unsplash
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