Volvo Can’t Catch A Break From US Tariffs

Volvo makes car in China, the EU and the US and had shifted production of certain models such as the popular XC60 SUV to Europe in order to sidestep tariffs on Chinese imports to the US.

Now, with Trump threatening the US as well, Volvo’s CEO Hakan Samuelsson has described any potential trade war between the US and EU as “worrying”.

Speaking with Automotive News, Samuelsson explained his exasperation given the companies efforts to avoid tariffs so far.

"The administration wants us to build cars in the US and reduce the trade deficit. By coincidence, we are doing exactly that,” he said,

XC60 production had moved to the EU while the company waited for exemptions for its exports to the US from China—apparently in vain as now the US and EU are trading barbs.

Volvo also has plans to build 150,000 cars in the US, of which half would be exported—though with more tariffs in place, its anticipated local employee numbers were unlikely to reach the hoped for targets that usually make American politicians so happy.

"We will eventually build 150,000 cars in the US, of which half will be exported. And we will sell about the same number there,” he said, adding that "I hope the administration sees that and taxes somebody else.”