Joe Biden Chokes China’s EV Industry, Proposes Fresh Regulations To Reshore Auto Supply Chain: How To Invest In The Initiative

The Tema ETF Trust Tema American Reshoring ETF (ARCA: RSHO) was consolidating Monday after surging 2.34% on Friday. The move higher came after President Joe Biden proposed fresh regulations aimed at boosting the production of electric vehicle batteries and their components in the United States.

The new rules may motivate U.S.-based EV automakers to change their supply chains and source all materials, such as the rare earth minerals used in EV batteries, from American producers to take advantage of the Biden administration’s federal tax credits, the New York Times wrote.

China’s EV manufacturers are already struggling in the U.S. market due to the 25% tariff on Chinese auto imports, which former President Donald Trump enacted, and Biden reinforced.

Must Read: Biden vs. Trump: American Manufacturing Revival in Focus – This Fund Offers Exposure To U.S. Reshoring Efforts, Offering Protection Against Supply Chain Turmoil

Trending: US Naval Ship ‘Seriously Violated China’s Sovereignty And Security’ After Unlawfully Breaching Territorial Waters, Says Beijing

Investors seeking an opportunity to benefit from the government’s present and future reshoring initiatives may choose to take a position in RSHO, which offers protection against trade wars, geopolitics and supply chain failures, holding companies that through their business practices and initiatives are set to emerge as victors in the reshoring wave.

The fund’s industry breakdown is heavily weighted in the industrial sector, which makes up 68.39% of its holdings, while companies focused on non-energy materials make up about 23.32% of the ETF’s holdings.

Since RSHO began trading on May 11, the ETF has soared 20%, outpacing the S&P 500, which is up about 10% over the same period.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial. 

The RSHO Chart: RSHO printed a big bullish kicker candlestick on Friday and on Monday, the ETF was consolidating slightly lower, forming an inside bar pattern. The inside bar leans bullish because RSHO was trading higher before forming the pattern and traders can watch for the ETF to break up from Friday’s mother bar on higher-than-average volume to indicate the formation has been recognized.

RSHO is trading in a confirmed uptrend, making a consistent series of higher highs…