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BMW Hikes Prices for U.S.-Built Cars Sold in China
BMW AG has become the first high-volume carmaker to raise prices on vehicles it ships from the U.S. to China to partly offset the latter country’s retaliatory import tariffs.
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BMW AG has become the first high-volume carmaker to raise prices on vehicles it ships from the U.S. to China to partly offset the latter country’s retaliatory import tariffs.
The same issue prompted Tesla Inc. three weeks ago to boost prices by about 20% on the American-made electric vehicles it sells in China.
BMW says it is hiking prices for its U.S-built X5 and X6 crossover vehicles by 4% and 7%, respectively. The new prices take effect today.
The increases are intended to offset higher import taxes China implemented in response to U.S. tariffs on aluminum and steel. China had lowered its import levies on cars from 25% to 15% on July 1. But it raised them to 40% a few days later when the U.S. imposed additional taxes on $50 billion worth of Chinese goods.
BMW, which is America’s largest vehicle exporter, ships about 260,000 SUV/crossovers annually from the U.S. to markets overseas.
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