In US-China tariff fight, German autos are unlikely victims

DETROIT (AP) – If a trade dispute between the U.S. and China escalates and both countries raise tariffs, American automakers won’t suffer that much. But German luxury automakers BMW and Mercedes will.

BMW exports about 87,000 luxury SUVs from a factory near Spartanburg, South Carolina. Mercedes ships up to 75,000 more from Tuscaloosa County, Alabama.

Analysts say if the tariffs are doubled to 50 percent as China has threatened, BMW and Mercedes could be forced to move production to China or elsewhere. That could cost American jobs.

On Tuesday, China President Xi Jinping indicated his country would make concessions, promising to cut auto import taxes and improve intellectual property protection but offering no specifics. China has promised similar changes in the past but has not followed through.

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