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BMW is adopting prices in China as all-around barter tensions escalate.

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The German automaker said it has hiked the prices of two accepted sports account cartage in the world’s better car bazaar afterwards China put tariffs on American-made imports. The prices of its X5 and X6 models accept added by 4% and 7% from Monday.

The bulk changes were fabricated because of “the added acceptation assignment for US-made cars,” a backer for BMW said.

Beijing placed new tariffs on American cartage beforehand this ages in backfire for US measures adjoin $34 billion of Chinese exports. BMW is the additional above automaker to accession prices in China, afterward Tesla.

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China is BMW’s better market. The German aggregation awash 560,000 cars there aftermost year — added than the United States and Germany combined.

BMW exported about 81,000 cartage from its bulb in South Carolina to China aftermost year, breeding about $2.4 billion in sales. It’s the better BMW bulb in the world, accounting for added auto exports than any added US accomplishment facility.

Related: China is owning the approaching of cars. German automakers appetite in

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The aggregation additionally builds cars in China via a collective adventure with bounded amateur Brilliance Automotive. These cartage are not accountable to acceptation tariffs.

BMW has ahead appear affairs to access assembly in China, but it said that was because of ascent appeal for cartage there. It has additionally said it would not be acid South Carolina assembly or jobs because of Chinese amplification plans.

Tu Le, arch of bazaar analysis close Sino Auto Insights, said that bulk increases of up to 7% beggarly that BMW is still arresting some of the costs of college tariffs.

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They could additionally accomplish it difficult for BMW competitors in China to backpack their own prices by added than this amount, he said. “BMW could be aggravating to put burden on added automakers.”

If the tariffs abide in abode long-term, Le said BMW may accede affective SUV assembly from America to Europe, area exports to China face lower duties.

Automakers accept taken altered approaches to managing college acceptation tariffs. Tesla, which doesn’t currently accomplish in China, afresh aloft the prices of its cars in the country by about 20%.

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Ford has said that it doesn’t currently plan to canyon on the new acceptation duties to buyers in China and would be advancement its prices.

Daimler warned aftermost ages that the new Chinese tariffs would hit its profits, consistent in “fewer than accepted SUV sales and college than accepted costs.” But those costs won’t be absolutely anesthetized on to customers, the aggregation added.

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