Tesla hikes China prices after retaliatory tariffs

Tesla is upping the price of its cars in China after Beijing hit American auto imports in its retaliatory tariffs on $34 billion worth of U.S. goods.

The big picture: Tesla is the latest company to take a hit in President Trump's trade war, which economists say could hurt American farmers and other automakers around the world.

The details:

• The price of Tesla's cheapest car in China, the Model S, is going up 20% — or $20,000 a piece — to $128,500. The price of the more expensive Model X is going up by $40,000 per unit to $240,000, reports CNNMoney.
• Tesla just lowered prices in China earlier this summer after Beijing cut foreign auto tariffs from 25% to 15%, but now prices are going up again.
• While some firms, like Ford, said it has no plans raise prices on consumers and will absorb the entire impact of tariffs, Tesla said it was unable to do so.

What to watch: Trump is threatening to escalate the global auto war by imposing tariffs on the U.S.'s foreign auto imports using the national security justification (Section 232). Leading car manufacturers like GM, Honda, Toyota, and BMW have warned against the impact of such a move, per Business Insider.