These tariffs imposed by President Trump have seen profits for certain Volvo models diminish
Volvo Cars has scaled back its U.S. model lineup in 2025, becoming one of the first major automakers to halt certain shipments due to high tariffs introduced under President Donald Trump. The company, owned by China’s Geely Holding, cited declining interest in sedans and station wagons, along with rising costs, as reasons for this decision.
Volvo confirmed it is now offering only about half of its 13 global models in the U.S. Going forward, its American lineup will be nearly all SUVs, with the V60 station wagon as the lone exception. Sedans, including the South Carolina-built S60 and the China-made S90, have been pulled. Volvo also stated that its new ES90 sedan cannot be sold profitably in the U.S.
Moreover, the changes are largely driven by steep U.S. import duties, 27.5 percent on European-made vehicles and over 100 percent on those from China, making it challenging for automakers to compete without significantly raising prices. Analysts warn that companies unable to absorb or pass on those costs may exit the market for specific models altogether.
Volvo has also suspended global sales of the V90 station wagon due to weak demand and temporarily halted sales of the European-made electric EX40 in the U.S., though it plans to resume shortly. Meanwhile, its budget electric SUV, the EX30, has faced delays and a scaled-back launch.
On top of that, only the higher-priced dual-motor model is available in the U.S. at USD46,195, compared to the originally promised USD35,000 version aimed to rival Tesla’s Model 3. Volvo’s flagship EX90 SUV, though assembled in South Carolina, has struggled to gain traction. Because most components are sourced from Europe, the vehicle is subject to a 25 percent tariff.
Despite high hopes, fewer than 2,000 units were sold in the first half of 2025. The EX90 starts at USD81,290 and the factory has capacity to produce 150,000 units annually. Dealers say the combination of high tariffs and stiff competition makes it hard to retain buyers. “Even with a luxury brand like Volvo, customers will jump to BMW or Lexus if the monthly payment is better,” said Bill Wallace, a Volvo dealer in Florida.
Looking ahead, Volvo announced plans to begin producing its XC60 hybrid SUV at the South Carolina plant in 2026 to better navigate trade barriers. We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
