It has begun. Some of the first US-made vehicles being exported to China are experiencing price increases due to the additional costs of tariffs on US car imports. Reuters reports that the Spartanburg, South Carolina-built BMW X5 and X6 crossover SUVs, both very popular in the world’s biggest auto market, have increased in price by 4 to 7 percent, effective starting today in China.
Interestingly, some industry analysts figured the expected price increases would have been more, but BMW is apparently willing to absorb most of the higher costs. How come? Because there’s fierce competition among luxury brands in China and adding too much to the price tags is not in BMW’s best interest.
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