BMW intends to increase the prices of its X5 and X6 SUV models sold in China by between 4% and 7%, the company told Reuters in a statement. The move is due to take effect on Monday.
The two models subject to the increase are both made in South Carolina but shipped to China, where they now face a 40% import duty. Beijing slapped additional 25% levies on US-made cars on July 6 during a round of retaliatory measures against Washington.
“BMW stands for free (trade) but can’t stand still without taking actions to respond to the market changes,” a company spokesman said.
Other car companies have made similar decisions to bear the brunt of the trade war’s cost to margins. Ford has previously committed to not raising prices, whilst Mercedes-Benz has only applied a modest increase to one of its US-made SUV models.
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