Volvo Cars will discontinue sales of its compact electric SUV EX30 in the United States after the 2026 model year, citing changing market conditions and financial considerations, according to statements reported by automotive outlet The Drive.
The decision follows a series of challenges for the EX30 in the U.S., including shifting trade policies and the expiration of federal electric vehicle incentives. Volvo said the move comes after “a thorough evaluation of our business and operational strategies,” describing it as a “direct response to shifting market conditions and financial factors.”
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The EX30, first unveiled in June 2023, was initially planned for a U.S. launch in summer 2024. However, the rollout was delayed after the Biden administration imposed a 100% tariff on Chinese-built electric vehicles—a measure that remained in place under the subsequent Trump administration. At the time, the EX30 was produced exclusively in Zhangjiakou, China, making it subject to the tariff.
Volvo later shifted production for U.S.-bound vehicles to its plant in Ghent, Belgium, beginning in April 2025. While this initially reduced tariff exposure, additional U.S. import duties were introduced, raising the rate significantly above earlier expectations and affecting the model’s cost competitiveness.
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According to The Drive, U.S. dealers have been informed that production of the EX30 for the American market will cease after summer 2026. Existing customer orders will still be fulfilled, but dealers have been given a final deadline in March 2026 to place new orders.
The model had been priced from $40,345 in the United States, including delivery, compared with a starting price of €38,490 in Germany.
Policy changes have also played a role. The expiration of the $7,500 federal EV tax credit in September 2025, combined with more relaxed emissions regulations for internal combustion vehicles under the Trump administration, has reduced incentives for both manufacturers and consumers to prioritise electric models.
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Despite the withdrawal from the U.S., the EX30 will continue to be sold in other markets, including Europe, Canada, and Mexico. Volvo also plans to maintain its broader electric portfolio in the United States, including the larger EX90, produced in South Carolina, and the upcoming EX60.
The move reflects a broader trend among automakers reassessing their electric vehicle strategies in the U.S. market. Several manufacturers, including Ford Motor, Stellantis, Honda, and General Motors, have scaled back or adjusted EV plans in response to evolving regulatory and market conditions.