The CEO of Volvo Cars, Hakan Samuelsson, urged the European Union to reduce its 10% tariff on U.S.-made cars.
He shared this view in an interview on Thursday, Samuelsson argued that European automakers don’t need protection from American rivals.
This came after Volvo released its second-quarter earnings. He said,
“If Europe supports free trade, we should lead with low tariffs.”
Brussels has been negotiating with the U.S. auto industry, they want to lower the 27.5% tariff on European car imports.
Tariff Tensions Rise
U.S. President Donald Trump has threatened to raise tariffs, He plans to increase them to 30% on EU auto imports from August 1.
This puts pressure on the EU to act. Before Trump, the U.S. had a 2.5% tariff on European cars. The EU’s 10% duty on U.S. vehicles has long been a point of contention.
Samuelsson called it unfair. He added, “European carmakers don’t need shields from U.S. builders.”
Volvo, mostly owned by China’s Geely Holding, faces high exposure to U.S. tariffs. Most of its U.S. sales come from European imports.
Volvo’s Response
Volvo announced a new move on Wednesday. It will start producing its popular hybrid XC60 in the U.S. by late 2026.
This aims to avoid tariff issues. The South Carolina plant currently makes the Polestar 3 and EX90. The EX90 has struggled with U.S. buyers.
Volvo is also cutting its U.S. product range. Samuelsson said, “We control production changes. On tariffs, we can only share our view.”
Armenian Dram
Ghana Cedi
Gambian Dalasi
Guinea Franc
Nigerian Naira
CFA Franc BEAC
