STOCKHOLM/DETROIT: Volvo Cars customers will likely bear the brunt of increasing trade tariffs, CEO Hakan Samuelsson said this week, as the company faces mounting pressure from U.S. import levies.

He warned that selling one of Volvo's most affordable electric vehicles, the EX30, in the U.S. could become unfeasible if tariffs climb further.

His comments followed U.S. President Donald Trump's announcement recommending a 50 percent tariff on European Union goods starting June 1, citing trade tensions with the bloc.

"That would of course be almost impossible," Samuelsson said of continuing to import the Belgium-made EX30 under the proposed tariff structure. The vehicle, originally produced in China, had already seen delays in the U.S. rollout due to earlier tariffs. It began production in Ghent, Belgium, in April to sidestep those levies, but even with the shift, the model's price has risen from its planned US$35,000 to $46,195.

Like many automakers, Volvo is grappling with the implications of shifting trade policy. While rivals like Ford, GM, and Toyota rely on production in countries such as Mexico, Japan, and South Korea, Volvo's U.S.-bound vehicles primarily come from Europe, putting them at risk under Trump's latest trade proposal.

Still, Samuelsson remained cautiously optimistic: "I believe there will be a deal soon. It could not be in the interest of Europe or the U.S. to shut down trade between them."

The U.S. accounted for 16 percent of Volvo's revenue in 2024. The company is now looking to scale up production at its South Carolina plant and introduce a new mid-size plug-in hybrid model.

Volvo shares were down 5.0 percent by early afternoon trading.