Volvo Cars’ CEO Håkan Samuelsson has issued a stark warning about the ramifications of proposed U.S. tariffs on European imports, calling them a significant threat to the Swedish automaker’s ability to offer affordable electric vehicles in the American market. His comments come in the wake of U.S. President Donald Trump’s announcement of a potential 50% tariff on all European Union goods, set to take effect from June 1.
Tariff Threat Could Halt EX30 EV Imports
At the heart of the storm is Volvo’s EX30, an affordable electric vehicle initially manufactured in China, with a current starting price of $46,195. Originally pegged to launch at $35,000, the car’s pricing had already been inflated due to existing tariffs on Chinese-made vehicles. Volvo shifted production to Ghent, Belgium in April 2025 to circumvent Chinese tariffs—but now faces a fresh setback.
“A 50% tariff would of course be almost impossible,” said Samuelsson in an interview with Reuters. “It would severely limit our ability to offer the EX30 in the U.S., undermining the entire purpose of making electric mobility more accessible.”
Trump’s Tariff Strategy Jolts Auto Industry
President Trump’s tough trade rhetoric has reignited fears across the automotive sector. Describing the European Union as “hard to deal with,” Trump said he would recommend an across-the-board 50% tariff on EU goods to “level the playing field.” His administration has been under growing pressure from domestic automakers and lobbyists to take a hard stance on imports.
This latest escalation could significantly disrupt global supply chains, with automakers already struggling to adapt to ongoing cost pressures, chip shortages, and the transition to electric drivetrains.
Competitive Disadvantage for European Carmakers
While U.S. carmakers like Ford, GM, and Toyota benefit from manufacturing in Mexico, South Korea, or Japan—locations not currently facing such steep tariff threats—Volvo remains vulnerable. The majority of its U.S. sales are dependent on European-made vehicles, with the EX30 poised to be a key player in the EV affordability race.
Samuelsson acknowledged the disparity. “There is a real risk here that affordable EV options from Europe will disappear from the U.S. market, putting us at a competitive disadvantage.”
Hope for Diplomacy as Volvo Plans Local Expansion
Despite the tensions, Samuelsson expressed cautious optimism that diplomacy would prevail. “I believe there will be a deal soon. It could not be in the interest of either Europe or the U.S. to shut down trade between them,” he said.
In the meantime, Volvo is looking to mitigate risks by expanding its U.S.-based production. The automaker has plans to increase output at its Charleston, South Carolina facility, where it may introduce a mid-sized plug-in hybrid to meet growing American demand for eco-friendly vehicles.
Stock Slumps, Uncertainty Looms
Volvo’s shares dropped 5% as of 1337 GMT following the tariff announcement and the CEO’s comments. The stock dip underscores investor anxiety over the potential fallout of a prolonged trade conflict.
As the automotive industry braces for a turbulent summer, all eyes are on Washington and Brussels for signs of a breakthrough. For Volvo and its EX30, the road to affordable EV adoption in the U.S. may be hitting a costly detour.
