Volvo Cuts U.S. Lineup Amid Soaring Tariffs and Weak EV Demand

Volvo Cars has significantly reduced its U.S. model lineup in response to steep tariffs and slowing electric vehicle (EV) demand. The Swedish automaker, owned by China’s Geely Holding, now offers only about half of its 13 global models in the U.S., focusing solely on SUVs, including the V60 station wagon. Sedans like the S60 and S90 have been pulled due to low profitability, with the new ES90 also scrapped for U.S. sale.

The decision follows rising U.S. tariffs—27.5% on European-made cars and over 100% on Chinese imports—which have forced global automakers to adjust strategies. Volvo, with most of its production based in Europe and China, is particularly exposed. Even its U.S.-built EX90 SUV is impacted, as most of its components are European-made and now face a 25% import duty.

Volvo’s EX30, intended to compete with Tesla’s Model 3, is only available in its pricier dual-motor version at $46,195 in the U.S., far above the promised $35,000 entry price. The cheaper single-motor version is absent, limiting affordability for American buyers. Industry experts warn that as automakers prioritize high-margin vehicles, many customers may turn to rivals like BMW or Lexus instead.

Production issues, software bugs, and delayed rollouts have further hampered Volvo’s EV push. The EX90, despite U.S. production in South Carolina, sold fewer than 2,000 units in the first half of 2025. Dealers report that while customers appreciate Volvo’s offerings, they’re hesitant due to higher prices and limited model options.

To boost local production and mitigate tariff risks, Volvo announced plans to add its popular XC60 hybrid to the South Carolina plant in 2026. Until then, its U.S. presence remains constrained by trade policy and market headwinds.