Volvo May Withdraw Its New EV From the U.S. Before Consumers Have a Chance to Purchase | Carscoops

      CEO Hakan Samuelsson stated that it would be the consumers, not Volvo, who will bear the burden of price hikes due to tariffs.

      Volvo has indicated that U.S. tariffs could render the import of its EX30 SUV uneconomical.

      President Trump has proposed a 50% tariff on goods brought in from Europe.

      Samuelsson expressed that he anticipates car buyers will shoulder the new tariff costs.

      After a long wait for American consumers to receive the electric Volvo EX30, which has received acclaim from European reviewers, it is now in jeopardy of being withdrawn from the market. Volvo's CEO has cautioned that bringing the company’s smallest EV to market might no longer be financially feasible given the existing U.S. tariffs.

      Hakan Samuelsson, who has returned as the head of the company after a three-year break, shared this insight as Trump’s temporary 90-day tariff suspension is nearing its conclusion. European automakers are bracing for the potential implementation of a 50 percent tariff on cars imported to the U.S. as of June 1.

      Speaking to Reuters, Samuelsson noted that a 50 percent tariff would “limit the ability” of Volvo to sell the EX30 in the U.S. While Volvo manufactures the larger EX90 in the U.S., the American versions of the EX30 are produced in Belgium due to a shift in export production from China, which delayed its U.S. launch. The automaker is reportedly contemplating relocating production of the EX30, and possibly the XC60, to America.

      Consumers Will Feel the Price Increase

      Samuelsson stressed that it would be the customers, rather than the manufacturer, who would have to absorb the majority of the tariff-related price increases. Unlike luxury brands such as Aston Martin or Ferrari, which appeal to wealthier buyers less affected by price changes, Volvo’s customer base is more sensitive to price increases, making additional costs from tariffs a risky strategy.

      Volvo’s expectation that car buyers will need to bear the cost counters Trump’s stance that tariffs will be “absorbed” by exporting companies and their countries.

      Hoping for a Diplomatic Solution

      Nonetheless, Samuelsson appears optimistic that a resolution will be reached between Europe and the U.S. Following a recent agreement between the UK and the U.S., British brands like Land Rover and Mini have benefited from a lower 10 percent tariff.

      “I believe there will be a deal soon,” Samuelsson mentioned to Reuters. “It would not be in the interest of Europe or the U.S. to halt trade between them.”

      Time is pressing, and the industry is closely observing the situation. If no changes occur by next month, the EX30’s journey in the American market may be abruptly curtailed.