BMW raises price of US-built X5, X6 SUVs in China to offset Trump trade tariffs

July 30, 2018

The ongoing trade dispute spearheaded by President Donald Trump has led BMW to raise the price of two of its U.S.-built SUVs in China as a response to 40-percent tariffs imposed by the country on American-made cars.

MORE: Trump trade tirade threatens BMW, Mercedes-Benz business on a global scale

BMW confirmed in a statement to Reuters on Saturday that it would be raising the price of its popular X5 and X6 models in the world’s largest car market by 4 to 7 percent, helping offset the costs incurred by the tariffs. Both models are built in Spartanburg, South Carolina. BMW is the U.S.’s largest automotive exporter thanks to its booming SUV business.

The tariffs imposed by China as a response to Trump’s ongoing trade dispute affected about $34 billion of imports from the U.S. by the country, including cars and everything from crops to lobsters. Adding another 25 percent in tariffs to U.S.-made cars brought the total import tariff up to 40 percent going forward.

The trade dispute was started by Trump in an effort to protect American businesses, but has instead begun to harm the trade interests of prominent U.S. manufacturers such as BMW. Last year, the German marque shipped over 100,000 vehicles to China from the U.S.

BMW is not the only company affected by the trade dispute, as Reuters also reported that Mercedes-Benz moderately raised the price of its GLE-Class SUV in mid-July to offset the tariffs. The GLE-Class is manufactured in Alabama for sale in global markets including China.

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