VOLVO’S CEO has spoken out against extra fees on cars that could send the brand’s price tags through the roof.
Hakan Samuelsson made an urgent plea for lawmakers to address an “absolutely unnecessary” fine after the industry was threatened with a hard August 1 deadline.
Volvo’s CEO Hakan Samuelsson has made a desperate cry for help from lawmakers[/caption]
The chief fears that an ‘unnecessary fee’ could drive up prices[/caption]
The CEO is one of many industry players trying to mitigate the eye-watering 27.5% tariff the US has imposed on cars imported from Europe.
The European Union is one of many international powers that President Donald Trump has accused of taking advantage of the American dollar with unfair trade splits.
Before he was in office, the US imposed a meager 2.5% tariff on European-made cars while the EU added a 10% duty on American rides.
Now, Samuelsson has called on the EU to reduce their fees in the hopes that America will follow suit.
“I think it’s absolutely unnecessary, the European car industry definitely does not need to have any protection from American auto builders,” he told Reuters.
Volvo, which is majority-owned by China’s Geely Holding, is a Swedish brand that builds the bulk of its stock in Europe.
This makes the automakers especially susceptible to Trump’s sweeping new measures, which were imposed to stimulate offshore brands to open manufacturing facilities on US soil.
As of now, the brand has only two plants in America. One in Virginia builds Volvo Trucks, and another in South Carolina produces the Polestar 3 and electric vehicle model EX90.
However, the latter two models haven’t been as popular with US consumers, and the brand has recently started cutting down its offerings to Americans, Reuters reported.
Samuelsson commented on the decision to back down the brand’s options, saying, “These are the measures we have control over, rather than when it comes to tariffs we can only have an opinion like everybody else.”
Volvo called back Samuelsson as its CEO after he initially stepped down from the position in 2022.
He agreed to hold the role for two years as the brand continues its search for a more permanent chief.
Since taking back the helm, the veteran exec has been straightforward about how he’s trying to navigate a less-than-savory sales environment.
In April, soon after coming back to the top job, he said, “The car industry is under pressure from many directions.”
“I’m honored to return at such a defining moment for Volvo Cars.”
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
TARIFF DRAMA
The EU and US tariff war comes as Trump threatened to ratchet up American levies to 30% by August 1 if the two powers can’t strike a deal.
Just last week, Mexican President Claudia Sheinbaum told fellow world leaders that agreements can be reached before tariffs kick in.
Trump has been able to negotiate with close allies Canada and Mexico on the condition that they crack down on security on the US border.
Meanwhile, one car dealership revealed two words that drivers should watch out for to get a cheap vehicle as tariffs threatened to drive up prices.
And a buyer was gobsmacked when tariff drama added a $6,000 fee onto his car, despite it being used.
