(Reuters) – Volvo (OTC:) will delay deliveries of its EX30 electric car in the United States as it moves production of the compact SUV out of China following tariff hikes, Bloomberg News reported on Wednesday.
U.S. deliveries of the EX30 were expected this fall, but the automaker won’t deliver the vehicles until 2025 due to U.S. tariffs of more than 100% on imports of Chinese electric vehicles, the company’s deputy general manager and chief executive officer said. Chief Commercial Officer Bjorn Annwall told Bloomberg News in an interview.
Volvo Cars did not immediately respond to a Reuters request for comment.
“If tariffs are introduced, it will impact us, our customers and our volumes for a period of time, but it will be during a transition period and only on one model, so it is entirely feasible,” Unwall told Bloomberg News.
US President Joe Biden last month announced sharp tariff hikes on Chinese imports, including more than 100% on electric vehicles.
Following this, the European Commission also said it would impose additional tariffs of up to 38.1% on imported Chinese electric cars from July, risking retaliation from Beijing, which has said it will take action to protect its interests.
Volvo has started production of the EX30 in Zhangjiakou, China, and will gradually increase production of the small SUV in Belgium next year. That means EX30s imported into Europe could face an additional 20% tariff for about a year if EU tariffs take effect next month, Unwall told Bloomberg.