100% Tariffs On China-Made EVs Delay Volvo EX30 For U.S.

The Chinese-owned Swedish carmaker had huge plans to launch the $35,000 EX30 in the U.S.

The much-awaited Volvo EX30 faces a delay in the U.S. market. We know that the Biden government had announced an astonishing 100% tariffs on China-made EVs. Since Volvo is owned by the Chinese auto giant, Geely, the EX30 was manufactured in Zhangjiakou, China. With the astronomical EV tariffs, it no longer makes sense to bring it to the U.S. The affordability factor ceases to be valid anymore. Hence, the launch is delayed until at least 2025.

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Volvo EX30 Faces Delay For U.S. Launch

A Volvo USA spokesperson told InsideEVs that the EX30 has been postponed to 2025. We already know that Volvo is moving the production of the EX30 to Ghent, Belgium. Hence, the compact electric SUV will now bear a ‘Made in Europe’ tag rather than ‘Made in China’. That will negate the adverse effects of tariffs. However, it remains to be seen how will this change affect the final prices. It is obvious that the final prices will be higher.

The spokesperson said, “Today Volvo Car USA is informing retailers and EX30 preorder customers that due to changes in the global automotive landscape, the U.S. introduction of the EX30 will be delayed while we ramp up production at our plant in Ghent, Belgium, with a 2025 target delivery date to be announced.”

What now faces uncertainty is the price of the Volvo EX30. The sole reason for that enticing $35,000 price tag was the Chinese manufacturing. With that gone, the entire business proposition will take a hit. The EX30 is already a success in various international markets. The Swedish auto giant would’ve wanted to leverage that popularity and enter the U.S. market with that momentum. But with the European-made model, that will no longer be the case.

Anyway, Volvo remains confident about bringing the EX30 to the U.S. Note that the interested buyers had already paid a $500 reservation fee to book the EX30. Nevertheless, Volvo says that the reservation holders won’t be left hanging. The same spokesperson conveyed, “We’ll offer customers with existing preorders several options to drive a new Volvo until their EX30 arrives.”

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Learn Electric Cars Says

The agitation against China-made EVs is getting stronger and stronger. While it is meant to keep the Chinese carmakers away from competing in the Western markets, some legacy carmakers with deep ties with the Chinese automotive industry are also bearing the brunt. Volvo and Polestar are huge examples of this phenomenon. Remember, that even Tesla imported some of its EVs from China to Canada last year.

Hence, this issue is quite complex. In the long run, things could get even more messy. In fact, some carmakers like Stellantis have already questioned the tariffs on Chinese EVs. The Stellantis CEO Carlos Tavares, believes that such measures will negatively impact global trade. I also wrote a story on Canada likely to impose tariffs following the U.S. yesterday. Hence, it would be interesting to see how China reacts to these tariffs.