US cars producer Tesla raised its Model X and S prices in China by approximately 20% and became the first automakers that increased prices in response to US-China trade war, Reuters reports.

Other manufacturers will most likely follow after Tesla or move more production to China.

Tesla received about 17% of its revenues from China last year. This is why this market is very important for the company. Price increase will most likely cause sales drop, however, Tesla that was losing a lot of money recently cannot afford taking higher China tariffs.

It shall be noted that in May Tesla reduced price of its Model X in China by about $14000 after Beijing announced reduction of tariffs on imported cars. New duties will erase it.

Basic Model S now costs 849000 yuan or $128779. Company sends about 15000 cars to China per year. Currently Tesla is planning to build a plant in Shanghai.

German producer of luxury cars BMW, which also manufactures cars in the US and sells them to China, announced plans to raise prices. Another German producer Daimler AG said about its desire to sustain competitive position in Chinese market. Ford Motors is not planning to raise prices.