China’s Great Wall Motor on Wednesday said that its joint venture with BMW faced regulatory uncertainties as both companies pledged to proceed with plans for developing a low-cost electric car.

The risk of U.S. tariffs on global auto import and parts has cast a shadow over the global auto market, but some automakers stand to lose more than others. According to CNBC, automakers like BMW, Mercedes-maker Daimler and Jaguar Land Rover are the most vulnerable to trade tensions between the U.S., Europe and Asia.

Despite higher deliveries of luxury vehicles, BMW AG’s first-quarter operating profit fell 78 percent to 589 million euros, as the German carmaker felt the effects of higher investment spending and a 1.4 billion euro ($1.6 bn) legal provision.

German carmaker Bayerische Motoren Werke, BMW, on Tuesday, said it will buy cobalt directly from mines in Australia and Morocco to ensure they are not produced by child labor.