Volvo Shifts Gears to Dodge Trump’s Tariff Trap

​Volvo is putting the pedal to the metal in the U.S. The automaker is ramping up its American production game after President Trump’s latest tariff hammer landed on imported cars. With a stiff 25% duty now slapped on vehicles brought in from abroad, Volvo’s CEO Håkan Samuelsson says it’s time to double down on domestic output — and possibly add a whole new model to the assembly line at its South Carolina plant.

That Ridgeville factory already churns out the EX90 and the Polestar 3 — two sleek electric rides. But with Trump’s tariffs tightening the screws, Samuelsson confirmed they’ll “have to look closely” at which new model to bring into the mix to cushion the impact of rising costs. It’s a clear case of make more at home or pay up at the border.

Samuelsson, who returned to the CEO seat after a brief hiatus, is steering Volvo through choppy trade waters. His predecessor, Jim Rowan, had ambitious goals, including a fully electric fleet by 2030 — plans that have since been dialed back thanks to global headwinds and now, trade turbulence.

The new tariffs went live just after midnight in Washington and don’t stop at finished cars. Auto parts are also in the crosshairs, with additional levies looming by May. The potential ripple effect on supply chains is massive — think higher costs, delayed shipments, and strategic overhauls.

It’s not Volvo’s first dance with Trump-era trade policies. Back in 2018, not long after opening the South Carolina plant, Volvo scrapped its plan to export sedans from there to China due to tariff crossfire during Trump’s first term. Now, history’s repeating — only this time, they’re leaning into building more in America to dodge the heat.

​With tariffs rising and pressure mounting, Volvo’s bet is clear: build more where you sell.