A Tesla in China will cost 20 percent more as new tariffs take effect in the country. The Chinese government imposed a new set of tariffs on U.S.-made goods this past Sunday, and automobiles are included.

Nikkei Asian Review reported on Monday that the least expensive Tesla Model S electric car now costs the equivalent of $127,000 USD. The price is up from $107,000 before China imposed the tariffs.

The Chinese tariffs on a number of U.S. goods are in response to the U.S.’ own tariff package that went into effect; China retaliated immediately. President Trump first floated the possibility of tariffs after alleging the Chinese violated the intellectual property rights of American companies.

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According to the report, China represented 15 percent of Tesla’s global sales in 2017 with 103,000 vehicles sold. The electric-car maker builds the majority of its cars in Fremont, California, and exports cars globally.

The rising prices of Tesla electric cars show the company does not plan to endure the added cost itself and will pass the cost onto consumers. However, the company also announced it plans to open its first Chinese assembly plant in Shanghai. Production should commence in two years, and if the tariffs are still imposed, local production would bring the cost of its cars down.

[Source: Nikkei Asian Review]