Mubasher: Tesla on Thursday said that it would reduce the price of its Model X and Model S vehicles in China, in a move that would see it taking more of a hit from tariffs related to a bitter trade conflict between Beijing and Washington.

The electric car giant would slash its prices for the two models by a range between 12% and 26% for more “affordability” in the world’s largest auto market in which sales of new-energy vehicles are skyrocketing.

“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” Tesla told Thomson Reuters.

The decision comes amid escalating trade rows between China and the US, in which Beijing levied extra duties on US imports, including automobiles, hurting Tesla which imports all the cars it sells in the country.

The carmaker’s move marks a shift from its July’s decision to raise prices in the market in response to the new tariffs. The company hiked prices then on its Model X and Model S cars by around 20%.

Tesla said last month that it faced major problems in selling cars in China because of new duties which would force it to boost its investment in its first overseas Gigafactory in Shanghai.

The auto giant managed to secure the site for establishing the facility, which would help it circumvent the steep import tariffs.