Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

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.

The details on BMW:

  • BMW said no production in South Carolina is being cut or moved overseas. BMW said it is simultaneously starting production of another model in China.
  • BMW said it is also no longer exporting the X3 model to China, but that began earlier this year, per Sparks.
  • Why China? That's "because of global demand," Sparks said. "China is now BMW’s largest market in the world, the demand for our vehicles is just going through the roof over there."
  • When asked if there are plans to cut production in the U.S. because of Trump's tariffs or conversations about that, Sparks said he is "not aware of any such plan."

The (potential) losers:

  • Daimler, as well as BMW, stand to suffer the most, according to the WSJ, since they have factories in the U.S. southern states. If they keep production and employment levels the same they will either have to absorb the added costs of exporting to China and Europe, or charge customers more.
  • Volvo’s Chief Executive, Hakan Samuelsson, has said the company’s plans to add 4,000 jobs for building cars to export over the next three years “could be jeopardized if something were to restrict trade.”
  • Americans: Keep in mind, as production moves overseas, American employment opportunities with these auto makers will be hurt — 80,000 Americans made cars for foreign automakers, according to an Axios review last year. Trump’s advisors warned the administration that launching these tariffs could hurt American employment in the U.S.

The (potential) winners:

  • China: At least in the case of BMW's deal, the number of cars produced each year at two facilities in China is expected to spike to 520,000 by 2019, per The Post and Courier.
  • Auto manufacturing abroad: Paying a 40% tariff effectively makes competitors’ models abroad cheaper, according to the WSJ. The finance chief of Porsche, Lutz Meschke, said “this is a favorable situation for us because the products from manufacturers in the U.S. are becoming less competitive.”

Correction: A previous version of this story, citing The Post and Courier of South Carolina, said BMW said it was shifting production overseas, which BMW says is incorrect.

Go deeper

14 mins ago - Technology

Facebook seeks fountain of youth

Data: Piper Sandler Taking Stock With Teens Study; Chart: Axios Visuals

Facebook CEO Mark Zuckerberg on Monday said that the company is pivoting its strategy to focus on young adults, following reports that teens have fled its apps.

Why it matters: A series of stories based on leaked whistleblower documents suggest the company sees the aging of its user base as an existential threat to its business.

Too big to cover alone: Newsrooms team up

Illustration: Annelise Capossela/Axios

News outlets are increasingly willing to work together on big, multifaceted stories — including this week's reporting on leaked documents from a Facebook whistleblower.

Why it matters: Collaborative efforts help bring more resources to bear on complex stories, some of which require a global reporting effort. But they require high degrees of coordination, and competition can sometimes get in the way.

Axios-Ipsos poll: Confidence in Biden COVID recovery tumbles

Expand chart
Data: Axios/Ipsos poll; Chart: Kavya Beheraj/Axios

Confidence in President Biden's ability to rescue the economy from COVID-19 has dropped since January, even as Americans' faith rises in his ability to make the vaccine widely accessible, according to the latest installment of the Axios/Ipsos Coronavirus Index.

Why it matters: It's Democrats and independents driving the declining economic confidence, from 52% of all U.S. adults at the start of his presidency to 44% now. Their softening faith could hinder Biden's ability to lead and hurt Democrats' position heading into the 2022 midterms.