"When Volvo unveiled the compact electric crossover in 2023, executives pitched it as a rare affordable EV for American buyers, with a starting price below $35,000. The vehicle was initially earmarked for production in China. But in 2024, under the Biden administration, the US imposed a 100% tariff on electric vehicles imported from China, forcing Volvo to shift US-bound production to Belgium."
"Additional tariffs imposed during the Trump administration on all imported vehicles raised the cost of bringing the car back to the US. The consumer price climbed as a result. Today, the EX30 starts at about $41,740, including destination. The Cross Country variant - which starts around $50,000 - only began arriving at US dealerships earlier this year."
"The decision comes as several automakers reassess imported EVs following a turbulent stretch for the sector. A mix of tariffs, shifting incentives, and slowing demand has pushed companies to pause or cancel some electric models."
Volvo is ending US sales of the EX30 and EX30 Cross Country after the 2026 model year, with production ceasing this summer and inventory clearing by year-end. Originally pitched as an affordable EV starting below $35,000 when unveiled in 2023, the vehicle faced significant pricing pressures from trade policy changes. A 100% tariff on Chinese-made EVs forced production to shift to Belgium, while subsequent Trump administration tariffs on all imported vehicles further increased costs. The EX30's starting price climbed to approximately $41,740, making it less competitive in the US market. This discontinuation reflects broader industry reassessment of imported EVs amid tariffs, shifting incentives, and slowing demand.
#ev-discontinuation #tariffs-and-trade-policy #automotive-pricing #electric-vehicle-market #import-regulations
Read at Business Insider
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