Volvo CEO: Customers Must Pay Tariff Costs, Not Us

The tariffs could even prevent the automaker from selling the electric EX30 in the United States.

Photo by: Volvo

By: Anthony Alaniz

May 23, 2025 at 2:15pm ET

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Volvo builds the S60 and the EX90 in the United States. But the company has to import the rest of its lineup from overseas. That could be a problem, as President Donald Trump has placed a 25-percent tariff on imported vehicles, and threatened today to implement a straight 50 percent duty on all goods imported from the European Union.

Automakers have a difficult road ahead navigating the ever-changing landscape of Trump’s tariffs, and many are taking a two-pronged approach, raising prices while eating a bit of the added costs. If you’re a Volvo buyer, you’ll likely have to pay most of those related costs, according to Volvo CEO Hakan Samuelsson.

Samuelsson told Reuters the tariffs could prevent Volvo from selling the new EX30 in the US. Volvo began building the electric crossover in China before starting production in Belgium. The automaker revealed the crossover in 2023 with a $34,950 starting price. A 50-percent tariff would destroy its competitiveness.

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Volvo isn’t alone in passing the added costs onto consumers. Aston Martin said its products would get more expensive. The once-cheap Ford Maverick now costs $30,000 to start. Subaru's entire lineup got a price increase earlier this week. General Motors said earlier this month that tariffs would cost the company $4 to $5 billion, but wouldn’t raise prices.

Automakers have warned that the tariffs could raise prices. Toyota Motor North America Chief Operating Officer Mark Templin told us that the tariffs on auto parts would lead to higher prices, lower sales, and more expensive repairs. Unless something changes, this is going to keep happening.