The 25% tariff on imported steel, aluminum, and auto parts continues to ripple through Spartanburg County’s manufacturing ecosystem, with Tier-2 suppliers in the BMW and Michelin supply chains reporting per-unit cost increases that threaten margins and hiring plans.
Trade between South Carolina and Germany totaled $13 billion in 2025, with BMW’s Spartanburg plant at the center of that relationship. The plant — the largest BMW factory in the world — relies on a network of imported components now subject to tariff surcharges.
According to a Scholars Strategy Network analysis, South Carolina’s manufacturing sector is “particularly vulnerable to these tariffs due to its reliance on both imported components and export-driven sales.”
Local manufacturers report evaluating alternative sourcing options, including domestic suppliers, to reduce dependency on tariffed imports. However, industry leaders say this is a strategy that takes time and significant capital to implement.
While tariffs can create incentives for domestic investment, they also raise consumer prices and the cost of doing business. For Spartanburg — where manufacturing accounts for nearly 17% of all employment — the stakes are among the highest in the nation.
