Tariffs Wreak Havoc With The Auto Industry

Trade issues have been concerning the automotive industry for some time. Whether it be NAFTA renegotiations (or NAFTA scrapping), Section 232 Tariffs, Exceptions to Section 232 Tariffs, ever since the current administration was elected, the Dashboard has been predicting that trade issues could upend the automotive industry. That day appears to have come as the latest round of tariffs on China include those aimed at autos and parts. China's retaliation was swift. And, it specifically targeted (among other things) light vehicles from the U.S.

Somewhat ironically, and perhaps betraying the current administration's lack of understanding of the Automotive industry, the retaliatory Chinese tariffs will most directly impact BMW. While the Bavarian Motor Works is routinely thought of by its German roots, it is the largest U.S. exporter of light vehicles thanks to its large Spartanburg, South Carolina plant. Thus, while the administration targets "foreign" auto supply and