U.S. President Donald Trump has threatened to impose tariffs on cars imported to the U.S.

In a strategic development, BMW stated, it is considering to build a second U.S. manufacturing plant which could produce transmissions and engines, said Harald Krueger, BMW’s Chief Executive.

The move follows reports that U.S. President Donald Trump is mulling to impose tariffs on cars imported to the United States.

With BMW seeing a positive rise in its U.S. sales,the carmaker is considering changes to its U.S. operations, said Krueger.

BMW already has a U.S. vehicle assembly plant, in South Carolina, and plans on opening another one in Mexico in 2019; it is also mulling changes to its current scheme of importing engines and transmissions.

“We’re at the range where you could think about a second location” in the United States, said Krueger while adding that such a factory would provide a natural currency hedge.

In reference to Brexit, in an interview at the Los Angeles Auto Show, Krueger said he backs British Prime Minister Theresa May’s current Brexit plan to divorce the United Kingdom from the European Union.

“The compromise on the table is something I can clearly support,” said Krueger. May is drumming up support for the divorce deal with the European Union ahead of a December 11 vote in British parliament.

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