Jul 29, 2018 - Economy
BMW to increase prices on U.S.-made SUVs in China
- Zachary Basu, author ofAxios Sneak Peek
Workers assemble BMW X5 automobiles on the production line during manufacturing at a plant in Jakarta. Photo: Solo Imaji/Barcroft Media/Getty Images
BMW has said it will increase prices 4% to 7% in China on two SUV models manufactured at its South Carolina factory — the X5 and the X6 — in order to partially offset costs from new tariffs on automobiles, reports Reuters.
The big picture: Beijing hit American auto imports with a 25% hike in retaliatory tariffs on July 6, bringing the total import duty to 40%. Like Ford, BMW's price rise indicates the German automaker will absorb the bulk of the higher import costs stemming from the trade dispute — while Tesla has hiked its Chinese prices by about 20%.