According to CNBC, Musk made the remarks on a Tesla earnings call this week, suggesting that absent U.S. tariffs on China, Chinese automakers like BYD and Nio Inc. “will pretty much demolish” American automakers.

“The Chinese car companies are the most competitive car companies in the world,” Musk said on the call, CNBC reports:

“So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established,” Musk said on Tesla’s earnings call Wednesday. [Emphasis added]

“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.” [Emphasis added]

At the same time, United Auto Workers (UAW) President Shawn Fain endorsed President Joe Biden this week, as he has blasted former President Donald Trump’s plan that would see tariffs on China significantly rise and 10 percent tariffs on all foreign imports.

This Congress, the House Select Committee on the Chinese Communist Party (CCP) recommended Biden end U.S. free trade with China, which would include the White House revoking China’s permanent normal trade relations status (PNTR).

Chinese automakers have made it clear they hope to flood the U.S. market with cheap China-made cars, including EVs. In some cases, the automakers have hinted at looking to skirt existing U.S. tariffs by taking advantage of the Duty Drawback Program.

For years, General Motors (GM) has used the program to lower U.S. tariffs on its China-made Buick Envision Crossover."