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WATCH: Trade war - BMW raises prices in China on US-made SUVs

2018-07-30 14:04

Robin Classen

Image: iStock

German automaker BMW said it will raise the prices of two US-made crossover sport-utility vehicles in China to cope with the additional cost of tariffs on US car imports into the world's biggest auto market.

The models affected by the hike are the popular X5 and X6, now costing 4% to 7% more to consumers.

Retaliation for higher tariffs

China raised the import tax on cars from the US to 40% in retaliation for higher tariffs on Chinese goods imposed by President Donald Trump.

READ: BMW: Tariffs mean higher prices in China for US-made SUVs

China imposed 25% tariffs on about $34-billion on US imports this month alone.

The price hike contrasts that of Ford, who said it would not increase prices of US made vehicles in China.

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