The effects of the on-going trade spat between the U.S. and China are beginning to be felt. According to Reuters, BMW is increasing the pricing on the U.S.-built X5 and X6 crossovers for the Chinese market. In a statement, BMW said the price increases will range from four to seven percent. This will only make a small dent in the 40 percent tariff being slapped on U.S. made vehicles entering China. BMW will be absorbing the remainder of the tariff for the time being.

“BMW stands for free (trade) but can’t stand still without taking actions to respond to the market changes,” said a BMW spokeswoman.

The German automaker isn't the only one to raise prices on vehicles destined to China. Reuters has learned from dealers that Mercedes-Bena has raised the price of the GLE-Class, which is built in Alabama.

Source: Reuters