Beijing — German car maker BMW says it will increase the prices of two US-made crossover sport utility vehicles (SUVs) in China to cope with the additional cost of tariffs on US car imports into the world’s biggest car market. In a move due to take effect on Monday, BMW said in a statement to Reuters over the weekend that it will increase maker-suggested retail prices of the popular high-margin X5 and X6 SUV models by 4% to 7%. The rates of increase suggest that BMW is willing to absorb much of the higher costs stemming from bringing the SUVs to China from its factory in South Carolina, underscoring the fierce competition among luxury car brands in China. BMW’s move comes after China imposed new tariffs earlier in July on about $34bn of US imports, from soya beans and cars to lobsters, as part of a widening trade row. Beijing, which in 2018 cut tariffs on all vehicles imported into China, slapped an additional 25% levy on US-made cars as of July 6. As a result, China now levies a 40...
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