China’s retaliatory tariffs on vehicles after President Donald Trump’s latest round of tariffs on billions of dollars worth of Chinese goods has led BMW to move a portion of SUV production overseas, according to The Post and Courier in South Carolina.
The German-based automobile manufacturer signed an agreement with its Chinese partner, Brilliance Automotive Group Holdings, to increase the number of vehicles produced in the country, according to the Charleston newspaper, with the total reaching 520,000 by 2019.
“Our agreement sets a long-term framework for our future in China — a future involving continued investment, further growth and a clear commitment to the development and production of electric vehicles,” said BMW CEO Harald Krueger said.
Along with moving some production offshore, BMW will also raise prices for cars made in the U.S. that are destined for China, saying the company is "not in a position to completely absorb the tariff increases”.
BMW is the largest U.S. auto exporter and employs 10,000 people at a plant in Spartanburg, S.C. The brand’s X3, X4, X5 and X6 SUV models and their variants are produced there.