Volvo Cars may shift production of certain models to the United States if tariffs increase, but remains committed to exporting its Europe-made EX30 SUV to the U.S. later this year, CEO Jim Rowan said on Wednesday.
Last year, Volvo moved EX30 production from China to Europe to sidestep European Union tariffs. However, potential new tariffs under former President Donald Trump’s proposed trade policies could force additional changes.
See also: Volvo Considers U.S. Battery Suppliers Amid CATL Tariff Impact on EX90 Pricing
EX30 production in Europe is set to begin this quarter, with ramped-up output aimed at serving both European and U.S. markets in the second half of 2025, Rowan told Reuters. While the current tariff on European car exports to the U.S. stands at 2.5%, potential hikes could impact profitability.
“It’s looking like that number is going to go up… if it’s 10% each way, we can cope with that, but if it goes to 25%, it’s a hell of a lot more difficult from a profit perspective,” Rowan said.
See also: Volvo Anticipates Difficult 2025 Due to EV Market Changes
Volvo has the capacity to shift more production to its U.S. assembly plant in Charleston, South Carolina. “We have space, paint shops, the buildings, all that’s there,” Rowan noted. “We just need to make a final decision on which models and which platforms we would move to the USA.”
The company currently builds the EX90 SUV in Charleston while importing hybrid and electric models from Europe. Rowan suggested that Volvo could move production of the XC60 or XC90 models, which share the same platform, to the U.S., or introduce models with different technology, depending on future tariff regulations.
See also: Volvo Rolls Out Plug & Charge and Infotainment Updates for Upcoming EV Models
“We’d have to wait and see the tariff quotes and then that would help us make that decision,” Rowan added.