BMW hikes some SUV prices in China because of tariffs

German automaker BMW is increasing the price of some U.S.-made SUVs sold in China to counter tariffs the country is levying on imports amid the escalating U.S.-China trade war.

BMW is increasing the suggested price of its X5 and X6 crossover sport utility vehicles by 4 percent and 7 percent, respectively, in China because of increased tariffs on the imported SUVs built at the BMW plant in Spartanburg, South Carolina.

BMW will also increase the price of its new X4 when it launches in China in the coming weeks, the carmaker says.

China levied new tariffs this month on U.S.-made goods after President Donald Trump announced $34 billion in new tariffs on Chinese imports. Two weeks ago, China said it filed a complaint to the World Trade Organization challenging Trump’s plan for tariffs on another $200 billion worth of Chinese goods. That import total represents about 40 percent of U.S. imports from China.

The price increases on the vehicles had been expected.

BMW foreshadowed the action when China announced the tariffs.

“BMW China will not be able to completely absorb the duty increase for US imported models,” the company said at the time.

BMW did not announce the price of the vehicles in China, but the X5 starts at $57,200 in the U.S., and the X6 starts at $62,950.

China is BMW’s third-largest market behind Western Europe and North America. BMW sold about 2.4 million vehicles in China in 2017 and expects that to climb to 2.9 million by 2022.