It is one of the tantalising ironies of the trade war between the US and China: German carmakers BMW and Daimler could end up as the biggest losers.
After decades of investing in American states that back Donald Trump’s Republican party, the US’s two largest car exporters by value are likely to be hurt most.
If China goes through with its threat to retaliate against the US president’s policies, sport utility vehicles built by BMW in South Carolina and Daimler-owned Mercedes in Alabama — America’s two largest car exporters by value — will be subject to onerous 40 per cent tariffs from July 6.
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