Volvo CEO Voices Concern Over US Tariff Hike Impact

Volvo Cars may face challenges importing smaller vehicles to the U.S. due to potential 50% tariffs on EU goods, announced by President Trump. CEO Hakan Samuelsson expresses concern but remains optimistic about a favorable trade agreement. Volvo shares fell by 5% following the announcement.

Volvo Cars CEO Hakan Samuelsson expressed concern on Friday regarding the financial impact customers might bear due to tariff-related cost hikes. He warned of potential difficulties in importing smaller cars to the United States if tariffs are imposed.

President Donald Trump announced a proposed 50% tariff on European Union imports from June 1, citing challenges in EU trade negotiations. Samuelsson told Reuters that this might restrict sales of Volvo's Belgium-made EX30 electric vehicle in the U.S. market.

Despite the tariff threat, Samuelsson is hopeful of a resolution, stating, "I believe there will be a deal soon." Meanwhile, Volvo shares fell by 5% by 1257 GMT.

(With inputs from agencies.)