BMW to raise prices on US-built SUVs in response to tariffs imposed after Trump threats

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Following an announcement from Group that it will be ramping up production in China to serve its largest market, the German automaker also confirmed Monday that it will on U.S.-built crossover in to President ’s proposed foreign-built vehicle .

MORE: BMW ramps up manufacturing in China with all-electric iX3 SUV

According to a report by South Carolina’s Post and Courier, BMW plans to raise the price of vehicles built at the Spartanville, SC plant and sold in China to help offset the 40-percent import tariff on cars from the U.S. Spartanville is the production site for many of BMW’s most important SUV models, including the X3, X4, X5, X6, and upcoming X7.

This news comes after BMW’s earlier announcement that it will build 520,000 vehicles in China next year, and will make the world’s biggest car market the production site for its electric iX3 SUV from 2020 onwards. With vehicles delivered to over 140 markets, BMW is the U.S.’s largest automotive exporter, so these retaliatory tariffs have a pronounced effect on its business.

Whether these tariffs hold for the long haul is yet to be seen, but clearly automakers are taking steps to prepare for the worst going forward.



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