BMW said Sunday it will increase the prices in China on two of its U.S.-made SUVs to offset the cost of tariffs on U.S. car imports.
Reuters reported that BMW will raise prices on its X5 and X6 SUV models by anywhere from 4 percent to 7 percent. The move was prompted by Beijing’s retaliatory tariffs on U.S. cars in response to President Trump ’s initial taxes on Chinese goods.
“BMW stands for free [trade] but can’t stand still without taking actions to respond to the market changes,” a company spokeswoman told Reuters in an email.
China slapped an additional 25 percent tariff on U.S.-made cars in a move that went into effect on July 6.
Reuters reported that BMW sent than 100,000 vehicles to China from the U.S. last year.
Trump imposed tariffs on $34 billion worth of Chinese goods earlier this year, prompting Beijing to respond with tariffs on an equal amount of U.S. products, including cars.
Trump has since ordered his administration to prepare hundreds of billions of dollars worth of additional tariffs on China, raising the specter of a trade war between the two nations.
Trump last week announced that the U.S. and European Union would restart trade negotiations, averting a potential trade war between the longtime allies for now.