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Volvo Defies Trade Tensions, Confirms US EX60 Launch

  //automotive-transportation.news-articles.net/co .. fies-trade-tensions-confirms-us-ex60-launch.html
  Published in Automotive and Transportation on Thursday, January 22nd 2026 at 3:37 GMT by Bloomberg L.P.
      Locales: SWEDEN, CHINA, UNITED STATES

Greenville, SC - January 22, 2026 - Volvo Car AB is demonstrating remarkable resilience in the face of mounting trade tensions, reaffirming its commitment to the planned US launch of its highly anticipated EX60 electric SUV. The move comes as the Biden administration considers significant tariff increases on vehicles imported from China, potentially impacting the automotive landscape and raising costs for consumers.

According to a recent interview with Bloomberg Television, Volvo's CEO, Jim Rowan, expressed confidence in the company's ability to navigate these challenges and stick to its original launch schedule. While the possibility of tariffs reaching as high as 25% looms, Rowan stated that Volvo is prepared to absorb a portion of the increased costs without substantially impacting the retail price of the EX60, which currently sits around $47,000.

Strategic Responses to Trade Uncertainty

Volvo's strategy focuses on several key initiatives to mitigate the risks associated with potential tariffs. A cornerstone of their approach is leveraging the existing manufacturing capacity at their South Carolina facility. This plant, currently supporting production for other models, is expected to play an increasingly vital role in the EX60's US rollout. Furthermore, the company is actively exploring the localization of battery production within North America, aiming to reduce reliance on Chinese-manufactured components - a critical aspect of EV production.

Rowan acknowledged that multiple scenarios are being evaluated, emphasizing the need for flexibility and adaptability within the company. "We're obviously looking at all the scenarios," he commented. "Right now, our intention is to stick to the plan." This signals a determination to maintain momentum toward Volvo's ambitious electrification goals, including a commitment to becoming a fully electric vehicle manufacturer by 2030. The EX60 is a pivotal vehicle in achieving this vision.

Broader Industry Implications

Volvo's situation reflects a wider challenge facing several major automakers. Tesla Inc. and BMW AG, among others, also rely on Chinese production for certain vehicle models, making them susceptible to tariff-related cost increases. However, Volvo's greater dependence on Chinese production for the EX60 puts them in a somewhat more vulnerable position compared to some competitors. The tariffs are intended to bolster the US auto industry, aiming to incentivize domestic production and protect American jobs. But the implications extend beyond domestic manufacturers.

Ongoing Dialogue and Future Considerations

Volvo is actively engaged in discussions with US authorities to convey the potential impact of the proposed tariffs. The company is seeking to collaborate on solutions that support both the growth of electric vehicle adoption and the maintenance of a stable supply chain. Beyond the immediate tariff threat, Volvo's long-term strategy includes diversifying its manufacturing footprint to reduce reliance on any single region. This includes exploring further expansion of the South Carolina plant's capabilities and establishing partnerships with North American battery suppliers.

The situation remains fluid, and the final decision on tariffs is still pending. However, Volvo's proactive approach and commitment to localized production signal a determined effort to navigate the uncertain trade environment and ensure the successful introduction of the EX60 to the US market.