A small and inexpensive electric car called "Seagull" has made American car manufacturers and politicians tremble.

The car, launched by the Chinese automaker BYD last year, sells for about $16,400 in China, but it performs well and is assembled skillfully, competing with American electric cars that cost three times that price. The shorter-range version costs less than $13,700.

The tariffs on imported Chinese vehicles will keep the Seagull out of America for now, and it is likely to be sold for over $12,000 if imported.

However, the rapid emergence of low-priced electric cars from China could shake the global automotive industry in ways not seen since the arrival of Japanese manufacturers during the oil crises of the 1970s. BYD, which means "Build Your Dreams," could be a nightmare for the U.S. automotive sector.

Sam Fiorani, Vice President of AutoForecast Solutions near Philadelphia, said, "Any automaker that doesn't take it seriously as a competitor will lose when it hits their market. BYD's entry into the U.S. market is not a question of if, but when."

American politicians and manufacturers already see Chinese electric cars as a serious threat. The Biden administration is expected to announce on Tuesday a 100 percent tariff on imported electric vehicles from China, saying they pose a threat to jobs and national security in the United States.

The American Manufacturing Alliance stated in a research paper that government-backed Chinese electric cars "could end up being an extinction-level event for the American automotive sector."

Earlier this year, Tesla’s CEO Elon Musk said that Chinese electric cars are so good that without trade barriers, "they would basically destroy most other car companies in the world."

Outside of China, electric cars are often expensive and target high-income buyers. But Chinese brands are providing affordable options for the masses – just as many governments encourage a shift away from gasoline vehicles to combat climate change.

Inside a massive garage near Detroit, a company called Caresoft Global disassembled a Seagull that its office purchased in China and shipped to the United States.

Company president Terry Witkowski, a former chief engineer for GM pickup trucks, said the car represents "a clear wake-up call" for the American industry, which is years behind China in designing low-cost electric cars.

After the disassembly process, Witkowski said he kept wondering if American automakers could adapt, "Things need to change in radical ways to be able to compete."

There is no single miracle explaining how BYD can manufacture a Seagull for such a low price. Instead, Witkowski said the entire car, which can travel 405 kilometers on a single charge, is a "lesson in efficiency."

High labor costs in the United States are part of the equation. BYD can also reduce costs due to its expertise in battery manufacturing, which largely uses lithium iron phosphate chemistry in consumer products. These batteries are cheaper but have a shorter range than most current lithium-ion batteries.

Witkowski noted that Americans are still learning how to make cheaper batteries.

BYD also manufactures many of its own parts, including electric motors, dashboards, and chassis, using its vast scale - with 3 million vehicles sold globally last year - to drive down costs.

It designs vehicles with cost and efficiency in mind. For example, the Seagull has only one windshield wiper, eliminating one motor and one arm, saving weight, cost, and labor needed for installation.

Witkowski clarified that American automakers don't often design vehicles this way and incur excessive engineering costs.

Efficiency means additional weight savings, allowing the Seagull to travel further on each charge using a smaller battery.

Witkowski said Detroit needs to relearn a lot of design and engineering quickly to keep up while discarding a century's worth of vehicle manufacturing practices.

The Seagull still has a sense of quality. The doors shut solidly. The gray synthetic leather seats feature stitching that matches the bright green body color, a detail typically found in more expensive cars. The Seagull tested by Caresoft has six airbags and an electronic stability control system.

A short drive through some parking lots by a reporter showed it operates quietly and handles curves and bumps on par with more expensive electric vehicles.

Although the acceleration isn’t as striking as that of other electric cars, the Seagull is lively and will have no trouble merging onto the highway.

BYD will need to modify its cars to meet American safety standards, which are more stringent than those in China. Witkowski says Caresoft hasn't conducted crash tests, but he estimates that it would add $2,700 to the cost.

BYD sells the Seagull, also called the Dolphin Mini, in four countries in Latin America for about $28,700. The high price includes transport and reflects the higher profit margins possible in less fierce markets than China.

BYD told the Associated Press last year that it is "still in the process of deciding" about selling cars in the United States, and it is considering factory locations in Mexico for the Mexican market.

The company does not sell cars in the United States, largely due to the 27.5 percent tariff on the sale price of Chinese cars upon arrival. Donald Trump imposed the bulk of the tariffs, at 25 percent, while he was president, and they have remained in place during Joe Biden's administration. Trump insists that the rise of electric vehicles supported by Biden will cost American factory jobs and send work to China.

The Biden administration has supported legislation and policies to build a base for electric vehicle manufacturing in the United States.

Some members of Congress are urging Biden to completely ban imports of Chinese cars, including those made in Mexico by Chinese companies that will now largely come in without tariffs.

Ford CEO Jim Farley has witnessed Caresoft's rapid growth with the Seagull and BYD, especially in Europe. He is moving to change his company. Earlier this year, he said a small "skunkworks" team is designing a new small electric car to reduce costs and maintain high quality.

Farley said Chinese companies sold almost no electric cars in Europe two years ago, but now they hold 10 percent of the electric vehicle market. They are likely to export worldwide and possibly sell them in the United States.

Ford is getting ready to face that. Farley said, "Don't take anything for granted." "This CEO is not doing that."