Volvo Faces Tariff Turbulence Under Trump's EU Import Duties

Volvo Cars CEO Hakan Samuelsson expressed concerns over U.S. tariffs impacting the company's ability to import its Belgium-made EX30 electric vehicle. With Trump suggesting a 50% tariff on EU goods, Volvo may struggle to maintain affordability in the U.S. market, impacting their strategy and sales.

Volvo Cars CEO Hakan Samuelsson announced concerns regarding the tariff-related cost increases customers may face due to proposed 50% U.S. tariffs on European goods. These tariffs could jeopardize the import of Volvo's EX30 electric vehicle into the U.S.

In an interview, Samuelsson explained that the tariffs could severely limit Volvo's ability to offer the EX30, initially produced in China, at an affordable price in the U.S., challenging the company's sales strategy.

Volvo's move to delay the EX30's entry into the U.S. market anticipates further levies and potential negotiations between the U.S. and EU. Meanwhile, Volvo's share prices experience volatility amid these trade uncertainties.

(With inputs from agencies.)