Driving the news: Volvo Cars has dramatically scaled back its U.S. model lineup this year, becoming one of the first major automakers to halt certain vehicle shipments as President Trump's tariffs make it harder to sell a broad range of cars profitably.
For context: The Swedish automaker now sells only about half of its 13-model global lineup in the U.S., focusing almost exclusively on SUVs while dropping sedans and most station wagons from American showrooms.
Volvo stopped S60 production at its South Carolina plant last year, halted sales of the China-made S90, and says the new ES90 sedan can't be sold profitably due to tariffs.
The company reported an operating loss of $1 billion for the second quarter, compared to an $800 million profit last year, partly due to tariff pressures.
Why it matters: Volvo is among the most exposed automakers to rising U.S. tariffs, with 27.5% duties on European-made cars and over 100% on Chinese imports putting pressure on volume and profitability.
What we're watching: Volvo is ramping up South Carolina production to help offset tariffs and will start building its XC60 SUV in the U.S. by late 2026. The company has also announced 3,000 job cuts globally. Meanwhile, in an interview with Reuters, CEO Hakan Samuelsson is urging the EU to cut its own 10% tariff on American cars, arguing European automakers don't need protection from U.S. competitors.
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