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In an interesting plot twist for tariffs, Mexico has decided to join in by imposing a 50% border tax on car imports from China and other Asian countries, in a move widely seen as an attempt to placate U.S. President Donald Trump.

Mexico faces pressure from Trump to limit its economic ties with China, much like Latin America, which the United States considers its own backyard.

Also, the free trade agreement between the United States, Canada and Mexico comes up for review next year, so appeasing Trump is seen as a way for Mexico to protect its own economy.

But Mexico’s tariffs will not just affect China’s No. 1 automaker BYD.

They will also hit Tesla, as all of the U.S. EV maker’s Model 3 and Model Y cars sold in Mexico since mid-2023 were manufactured at its Shanghai factory. 

Which brings us to today’s Auto File…

Russia has returned to bartering with China to circumvent than 25,000 different sanctions over its 2022 full-scale invasion of Ukraine, swapping wheat for Chinese cars and flax seeds for building materials.

Russia’s economy is showing signs of strain because of the sanctions and the war, with its central bank saying the country is technically in recession and where inflation is running high, at over 8% in July, in an economy overheated by state spending on the war.

Washington's warnings to Chinese banks against supporting Russia's war effort have stoked fears of secondary sanctions, which have fostered the re-emergence of barter transactions.

In the wake of the Soviet collapse in the 1990s, bartering deals were set up for everything from electricity and oil to flour, sugar and boots, allowing for pricing scams that made some Russians very rich.

It does make you wonder how many bushels of wheat your average Chinese EV would cost…

The Audi E5 Sportback, made with Chinese tech - REUTERS/Zoey Zhang.

China’s automakers face a gruelling price war at home that has destroyed profits.

Aside from expanding into foreign markets in search of cash-generating sales, EV makers are peddling their technology to Western automakers to bring in more revenue and survive the price war.

Global automakers are embracing the opportunity, as they need Chinese technology to leapfrog development hurdles, saving them billions and allowing them to launch new EVs quickly.

To boost its EV lineup for Chinese consumers, Audi built the AUDI E5 Sportback in just 18 months using technology provided by Chinese partner SAIC.

Renault and Ford want to go one step further and develop global models on Chinese EV platforms, sources said. 

But experts warn against excessive dependence on Chinese tech because automakers run the risk of losing their brand identity and becoming “just a retailer.”

Bye bye, electric RAM 1500 pickup - REUTERS/Steve Marcus. 

Stellantis is killing plans for a Ram 1500 electric pickup because of weak U.S. demand for full-size EV trucks.

U.S. automakers have cut back EV plans over the last year and the evaporation of federal support for fully-electric cars under Trump means that trend will accelerate.

Full-size electric pickups have become a particularly difficult segment for automakers, as vehicles like the Ford F-150 Lightning, Rivian R1T and Tesla Cybertruck have not sold well.

Stellantis said it will also rename its extended-range electric pickup, formerly called the Ram 1500 Ramcharger, to the Ram 1500 REV.

Earlier this month, the U.S. government raided a Hyundai battery factory under construction in Georgia and arrested close to 500 people, mostly South Korean nationals.

The problem is those South Korean nationals, who subsequently went home, were specialized workers whose skills Hyundai says were needed to build that factory.

President Trump had offered to let them stay in the United States, but presumably after the shock of being arrested and hauled off by immigration authorities, only one of the South Korean workers decided to do so.

The plant, part of a $7.6 billion factory complex to make EVs, was slated to come online later this year.

Now, Hyundai CEO Jose Munoz says that plant faces a minimum delay of two to three months to get up and running, costing the Korean automaker both time and money.

Tesla will raise production at its German plant for the rest of the year due to strong sales, the head of the Gruenheide factory said.

The U.S. Securities and Exchange Commission has moved to dismiss its case against Trevor Milton, founder and former CEO of hydrogen and electric truck maker Nikola, who was convicted in October 2022 on one count of securities fraud and two counts of wire fraud.

China's BYD said it will actively respond to Chinese rules ensuring that automakers making timely payments to suppliers, joining others in complying with a government campaign against the country’s price wars.

Tesla shares