Go deeper: U.S.-produced cars could go overseas because of Trump’s tariffs

Donald Trump with fingers in air talking.
Photo: Al Drago/Getty Images

BMW, the largest auto exporter from the U.S., says it will be raising its prices on SUVs built in the U.S. and imported to China because of President Trump's tariffs, according to Kenn Sparks, the head of U.S. Corporate Communications for BMW of North America, LLC. BMW says “all announced expansions for the BMW Spartanburg plant are continuing.”

The big picture: Many foreign auto companies choose to produce cars in the U.S. to keep their manufacturing costs in dollars to avoid currency fluctuations. But Trump’s battle on tariffs with China is starting to eclipse that benefit, and American employment could take a hit.