Business leaders and economists have warned that China's exports are likely to suffer significantly due to the intensifying tariff conflict with the United States, as reported by Radio Free Asia (RFA).

In a recent report by Reuters, the CEO of Volkswagen Passenger Cars (VLKAF,) Thomas Schäfer, noted that increasing production at its Chattanooga, Tennessee plant to comply with President Trump's tariff rules is not a realistic endeavor for the company.

The American auto industry is working out how to adjust supply chains if the trade war continues, a potentially expensive prospect.

This comes as BMW along with other European carmakers are bracing for impact from US President Donald Trump’s planned tariffs on vehicles imported to the US.