Volvo Cars has voiced strong concerns over the United States’ escalating import tariffs, warning that the financial burden will fall squarely on consumers. The company’s CEO, Håkan Samuelsson, cautioned that President Donald Trump’s decision to impose a 50% tariff on cars imported from the European Union, effective June 1, will force automakers to pass on the added costs to buyers.
Samuelsson, in a candid interview with Reuters, stated that the new tariff could significantly affect Volvo’s business strategy in the U.S. market, particularly plans to launch its electric vehicle, the EX30. Originally manufactured in China and later scheduled for production at Volvo’s Ghent plant in Belgium, the EX30 was intended to be competitively priced for American consumers. However, the 50% EU import tariff makes its U.S. debut ‘almost impossible.’
Despite these challenges, Samuelsson noted that not all is bleak for Volvo. The automaker already produces the S60 sedan and the upcoming EX90 SUV at its South Carolina facility. There are also plans to increase local production capacity, part of Volvo’s long-term strategy to reduce exposure to import duties. Nevertheless, a recent 5% workforce reduction at the plant highlights the operational pressures facing the company.
The Volvo chief remains cautiously optimistic that a compromise between the U.S. and the EU could be reached. “I believe there will be a deal soon. It could not be in the interest of Europe or the U.S. to shut down trade between them,” he remarked.
The situation underscores a broader industry dilemma: navigating geopolitical tensions while continuing to meet ambitious EV targets and price expectations.
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