>> Automaker BMW says it will raise prices for Chinese consumers for two of its SUVs made in the US, so it can cope with the increased cost caused by rising tariffs. The move is set to take effect on Monday, with fears growing over a rise in prices of consumer goods, as the US-China trade conflict continues.
For BMW, it will mean that the popular X5 and X6 SUV models will now cost 4 to 7% more. China is the world's biggest auto market, and SUVs here are big business. Analysts say the marginal price increase suggests BMW is still absorbing much of the increased costs of tariffs in the highly competitve luxury segment.
BMW's move follows China imposing 25% tariffs on about $34 billion worth of US imports this month. China's new tariffs added to already existing duties on auto imports into the country, meaning US-made cars now cap import tariffs of 40%. In an email statement to Reuters, a BMW spokesperson said, while the company stands for free trade, BMW can't stand still without, quote, taking actions to respond to market changes.
Last year, BMW shipped more than 100,000 US-made vehicles to China. BMW's price increase comes in sharp contrast to US carmaker, Ford, who said earlier it would not increase prices of US-made vehicles in China for now.