President Trump has a slapped 25% tariff on cars imported from China, so Volvo has shifted the supply source of American XC60 SUVs from China to Sweden.
Since the second generation’s launch, the US bound XC60 SUVs has been supplied from the company’s factory in Chengdu, China. Now, all new XC60s will come from Torslanda, Sweden, instead.
The company still imports the S90 sedan into the US from China because that is the only place the car is produced. The related V90 and XC90 models are made in Sweden, and are safe from Trump’s tariff war.
Unless, of course, he decides to follow through on his plan to similarly tax cars coming the EU. Automakers are currently arguing their case against these tariffs right now.
Volvo is looking to ramp up production at its new factory in Charleston, South Carolina, just in case the worst case scenario comes about. The recently opened factory is currently making the new S60 sedan.
Source: Automotive News