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Higher Price for BMW’s US-made SUVs due to Tariff Cost

Yesterday, July 29, it was reported that BMW has decided to increase the prices of two US-made SUVs in China due to tariff cost.

BMW is ready to take the challenge of the competition between car manufacturers in China by bringing their product, SUV, to the latter. This is amidst the announcement that there will be an additional tariff cost to all US products that will be imported into the country.

In order to prevent their company from getting a lower profit or revenue, the German carmaker has decided to raise the price of their products by 4 percent or as high as 7 percent. This strategy will help them gain the profit they are used to receiving even amidst the increase of tariff costs.

It is not surprising that BMW is not afraid to increase the cost of their products since the demand for their models like X4, X5, and X6 crossover has been particularly high in the said country. It was even reported that the car manufacturer has released over 100, 000 vehicles in the previous year- all of which were imported to China.

BMW’s decision was not made without careful evaluation, the company actually used its competitor as a preference and basis before finalizing its plan.

Their action towards the issue suggests that they are fine with the event at hand and that they are ready to adapt to the new rules of trading. They might be used to free trading, but this does not mean that they are not open to such changes. They also made sure that they are always ready for changes in the market.

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