These Two USA-Made BMWs Have Just Become More Expensive In China

Industry News

The additional cost of tariffs has to be made up for somehow.

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.

The automaker has no choice but to do something in regards to a price increase ever since China began imposing new tariffs earlier this month on roughly $34 billion of US imports, which also includes soybeans and even lobsters. For US-built vehicles, China also added an extra 25 percent import levy starting July 6. This means China now has a 40 percent total import duty on all cars from the US. BMW doesn’t appear to be too pleased by this latest development, with a spokeswoman telling Reuters: “BMW stands for free (trade) but can’t stand still without taking actions to respond to the market changes.”

Related:
China Lowers Trade Tariffs On Foreign Vehicles And Auto Parts
China Lowers Trade Tariffs On Foreign Vehicles And Auto Parts
Will BMW Slash US Factory Jobs Because Of Trump-Imposed Tariffs?
Will BMW Slash US Factory Jobs Because Of Trump-Imposed Tariffs?

Spartanburg also builds the popular X4, which is also imported to China. For now, it doesn’t appear BMW has increased its price tag, but that could change in the near future. Not surprisingly, BMW isn’t alone in its dilemma of racing prices and trying to absorb most costs. Ford has already said that, for the time being, it won’t increase its prices in China and will absorb costs in an “effort to sustain its business momentum.” BMW’s arch-rival, Mercedes-Benz, slightly increased the price of the GLE midsize SUV in China, which is built in Alabama. Chances are we haven’t heard the last of US-built auto price increases in the world’s biggest auto market.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Drifting A 1,000-HP Corvette On Mountain Roads Takes Some Serious Skill

Thought drifting the entire Nurburgring was challenging? Try it in a 1,000-hp Corvette on a mountain road with no safety rails.

Hennessey Heritage Edition Ford Truck Makes More Power Than Anything You’ve Got

This crazy beast is even more powerful than the Ford GT.

Ford Imagines A Future With No Traffic Lights

Stopping at junctions could be a thing of the past in the future.

One-Off Ferrari 330GT Speciale Is A 50-Year-Old Dream Come True

This stunning coachbuilding project is a tribute to legendary Italian designer Giovanni Michelotti.

Students Create 600-HP Honda Civic Hybrid Rallycross Machine

Deep Orange 9 is our kind of school project.

Is The Jaguar XE SV Project 8 Way More Powerful Than Advertised?

Jaguar claims the super sedan has 592 horsepower under the hood.

This Is The Road-Going Porsche 935 Targa Of Our Dreams

Let’s hope someone converts the Porsche 935 for the road in real life, too.

1,200-HP Electric Audi Sets A New World Record Driving Backwards

The Porsche GT2 RS Doesn't stand a chance (even going forward)

Self-Driving Range Rover Sport Navigates One Of UK’s Most Complex Public Roads

It’s another milestone in the quest for fully autonomous driving.

What's Hot

Related Cars

Starting MSRP
$60,700
Starting MSRP
$47,600
Starting MSRP
$62,950

Related Reviews

2017 BMW X6  Review
Model Overview
0
2017 BMW X6 Review
2019 BMW X4 First Look Review: Your X3 Coupe Has Arrived
First Look
0
2019 BMW X4 First Look Review: Your X3 Coupe Has Arrived
2019 BMW X5 First Look Review: Fourth-Gen Model Gets Technical
First Look
8
2019 BMW X5 First Look Review: Fourth-Gen Model Gets Technical
2019 BMW X4 First Drive Review: Beauty And Beast Become One
First Drive
18
2019 BMW X4 First Drive Review: Beauty And Beast Become One
2019 BMW X5 First Drive Review: Your New Go-Anywhere Luxury SUV Has Arrived
First Drive
27
2019 BMW X5 First Drive Review: Your New Go-Anywhere Luxury SUV Has Arrived