Volvo boss Samuelsson wants EU to cut ‘unnecessary' car tariffs to defuse Trump threat
Brussels, along with representatives from the car industry, has spent months trying to persuade Washington to lower its 27.5% tariff on imports of European cars.
"If Europe is for free trade, we should be the ones showing the way and going down to very low tariffs first," Hakan Samuelsson said after the company reported second quarter earnings.
US President Donald Trump has threatened to raise tariffs on EU car imports to 30% from August 1, increasing pressure on the bloc to strike a deal.
Before Trump's tenure, the US had a 2.5% tariff on European-made cars, while the EU had a 10% duty on vehicles imported from the US, which Samuelsson previously said was unfair.
"I think it's absolutely unnecessary. The European car industry definitely does not need to have any protection from American car builders," he told Reuters.
Volvo Cars, majority-owned by China's Geely Holding ], is one of the most exposed European carmakers to US tariffs as most of its cars sold there are imported from Europe.
Volvo announced on Wednesday that it would start US production in late 2026 of its best-selling model, the hybrid XC60, as a way to mitigate the tariffs.
Its South Carolina plant only produces the Polestar 3 and electric vehicle model EX90, which has struggled to gain traction with US consumers. Volvo has also started slimming down its product offering in the US, Reuters reported on Wednesday.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Daily Maverick
an hour ago
- Daily Maverick
US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war
Deal includes $600 billion EU investments in US, more EU energy, defence purchases 15% tariff better than threatened 30%, in deal mirroring Japan's US steel and aluminium tariffs remain at 50% By Andrew Gray and Andrea Shalal The announcement came after European Commission President Ursula von der Leyen travelled for talks with U.S. President Donald Trump at his golf course in western Scotland to push a hard-fought deal over the line. 'I think this is the biggest deal ever made,' Trump told reporters after an hour-long meeting with von der Leyen, who said the 15% tariff applied 'across the board'. 'We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability,' she said. The deal, that also includes $600 billion of EU investments in the United States and significant EU purchases of U.S. energy and military equipment, will indeed bring clarity for EU companies. However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate. The deal mirrors parts of the framework agreement the United States clinched with Japan last week. 'We are agreeing that the tariff… for automobiles and everything else will be a straight across tariff of 15%,' Trump said. However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would remain in place. Trump, who is seeking to reorder the global economy and reduce decades-old U.S. trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of '90 deals in 90 days.' He has periodically railed against the European Union saying it was 'formed to screw the United States' on trade. Arriving in Scotland, Trump said that the EU wanted 'to make a deal very badly' and said, as he met von der Leyen, that Europe had been 'very unfair to the United States'. His main bugbear is the U.S. merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to U.S. Census Bureau data. The EU points to the U.S. surplus in services, which it says partially redresses the balance. Trump also talked on Sunday about the 'hundreds of billions of dollars' that tariffs were bringing in. On July 12, Trump threatened to apply a 30% tariff on imports from the EU starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal. The EU had prepared countertariffs on 93 billion euros ($109 billion) of U.S. goods in the event there was no deal and Trump had pressed ahead with 30% tariffs. Some member states had also pushed for the bloc to use its most powerful trade weapon, the anti-coercion instrument, to target U.S. services in the event of a no-deal.

TimesLIVE
an hour ago
- TimesLIVE
US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war
The United States struck a framework trade deal with the European Union on Sunday, imposing a 15% US import tariff on most EU goods, but averting a spiralling battle between two allies which account for almost a third of global trade. The announcement came after European Commission President Ursula von der Leyen travelled for talks with US President Donald Trump at his golf course in western Scotland to push a hard-fought deal over the line. "I think this is the biggest deal ever made," Trump told reporters after an hour-long meeting with von der Leyen, who said the 15% tariff applied "across the board". "We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability," she said. The deal, that also includes $600 billion of EU investments in the United States and significant EU purchases of U.S. energy and military equipment, will indeed bring clarity for EU companies. However, the baseline tariff of 15% will be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate. The deal mirrors parts of the framework agreement the United States clinched with Japan last week. "We are agreeing that the tariff... for automobiles and everything else will be a straight across tariff of 15%," Trump said. However, the 15% baseline rate would not apply to steel and aluminium, for which a 50% tariff would remain in place. Trump, who is seeking to reorder the global economy and reduce decades-old U.S. trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." He has periodically railed against the European Union saying it was "formed to screw the United States" on trade. Arriving in Scotland, Trump said that the EU wanted "to make a deal very badly" and said, as he met von der Leyen, that Europe had been "very unfair to the United States". His main bugbear is the US merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to US Census Bureau data. The EU points to the US surplus in services, which it says partially redresses the balance. Trump also talked on Sunday about the "hundreds of billions of dollars" that tariffs were bringing in. On July 12, Trump threatened to apply a 30% tariff on imports from the EU starting on August 1, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. The EU had prepared countertariffs on 93 billion euros ($109 billion) of US goods in the event there was no deal and Trump had pressed ahead with 30% tariffs. Some member states had also pushed for the bloc to use its most powerful trade weapon, the anti-coercion instrument, to target US services in the event of a no-deal.

The Star
2 hours ago
- The Star
COSATU urges unity as racial rhetoric threatens South Africa's AGOA trade benefits
Thabo Makwakwa | Published 2 days ago The Congress of South African Trade Unions (COSATU) has issued a strong call for organisations across the country to tone down on divisive and destructive rhetoric that fuels racial tensions. The organisation stressed the importance of unity as South Africa seeks to renew the African Growth and Opportunities Act (AGOA) with the United States. In a statement released on Friday, COSATU's parliamentary coordinator, Mathews Parks, highlighted the potential consequences of inflammatory discourse, warning that "the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, particularly Afrikaans farmers and workers." COSATU's call comes amid the US' annual review of AGOA member eligibility, a critical process determining whether South Africa and other nations will retain preferential trade benefits. Parks expressed the federation's support for renewing AGOA before its expiry at the end of September, highlighting its significance for South Africa's economy. 'AGOA has been an important stimulant for key jobs and revenue-rich sectors such as mining, agriculture, motor manufacturing, and more,' Parks said. 'It has facilitated trade and investment between the US and South Africa, with over 600 American companies invested here and 500,000 South African jobs linked to US trade. It's a framework that benefits both nations and the continent.' He further noted that South African vehicle exports, including components like steering racks from Tunisia and rubber from Côte d'Ivoire, demonstrate the interconnectedness of regional trade, which AGOA has helped to facilitate. Parks stated the importance of a mutually beneficial trade agreement, highlighting opportunities for expanding product inclusion, supporting emerging sectors, and strengthening cooperation on the African Continental Free Trade Area (AfCFTA). COSATU expressed the positive reception of its proposals in Washington and lauded the solidarity shared with American labor movements, especially the AFL-CIO. The federation pledged to continue working closely with the South African government, business sectors, and US counterparts to deepen bilateral relations—while respecting sovereignty and promoting sustainable economic growth. 'Progress under President Cyril Ramaphosa's leadership to reset bilateral relations is encouraging,' Parks stated. 'However, it is vital that all parties support these efforts and refrain from inflammatory language that undermines social cohesion.' The federation strongly urged organisations such as AfriForum, NEASA, Sakeliga, and the Freedom Front Plus to prioritise national unity over partisan point-scoring. 'Whilst social media clicks may entertain friends over a braai, the malicious decampaigning of South Africa in the US will come at a real cost to all South Africans, in particular Afrikaans farmers and workers.' Parks stated that legitimate grievances should be addressed through constitutional and legal channels like Parliament, the judiciary, or law enforcement, rather than through rhetoric that incites racial divisions. 'Now is the time to shed narrow racial interests and place the nation's needs first,' he asserted. 'Partisanship has its place during elections, but the current climate demands maturity and responsibility from all stakeholders. Meanwhile, In a letter dated February 11, 2025 Republican congressmen Andrew Ogles, Tom Tiffany, Joe Wilson and Don Bacon asked President Donald Trump to revoke South Africa's access to the US market through AGOA and diplomatic relations alleging that South Africa had a vendetta against Israel, allegedly committing human rights violations and was friendly with China's Community Party. [email protected] IOL Politics