And as any good negotiator knows, it’s not about the first move — it’s about who walks away with the better deal.

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

Do you see a significant difference in how the second Trump administration approaches tariffs, compared to its first term, when you were Secretary of Commerce? Wilbur Ross: The biggest difference is that we were charting uncharted waters in the first term.

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.

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.