Following an announcement from BMW Group that it will be ramping up production in China to serve its largest market, the German automaker also confirmed Monday that it will raise prices on U.S.-built crossover SUVs in response to President Trump’s proposed foreign-built vehicle tariffs.
According to a report by South Carolina’s Post and Courier, BMW plans to raise the price of vehicles built at the Spartanburg, S.C. plant and sold in China to help offset the 40-percent import tariff imposed on cars from the U.S. Spartanburg is the production site for many of BMW’s most important SUV models, including the X3, X4, X5, X6, and upcoming X7.
This news comes after BMW’s earlier announcement that it will build 520,000 vehicles in China next year, and will make the world’s biggest car market the production site for its electric iX3 SUV from 2020 onward. With vehicles delivered to over 140 markets, BMW is the U.S.’s largest automotive exporter, so these retaliatory tariffs have a pronounced effect on its business.
Whether these tariffs hold for the long haul is yet to be seen, but clearly automakers are taking steps to prepare for the worst going forward.