FILE PHOTO: The new BMW X3 is displayed during a media preview of the Auto China 2018 motor show in Beijing, China April 25, 2018. REUTERS/Damir Sagolj

FRANKFURT (Reuters) - BMW’s Chief Executive on Tuesday said the carmaker has increased production of its X3 offroader model in Spartanburg, South Carolina, as well as in China, a step which reduces exposure to trade tariffs between China and the United States.

“We have increased production of X3 for the U.S. market,” Harald Krueger told analysts on a call to discuss first quarter results.

BMW has started building its X3 offroader in China, ending the need for exports of this vehicle from the United States and increased production in Spartanburg to meet demand from customers in North America, Krueger said.

“We are less sensitive compared to other companies if trade conflicts appear,” Krueger said.

President Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent, escalating a trade dispute which has hit profits of global carmakers including BMW.