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.
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