- Tariffs are pushing some Volvos out of the U.S. market.
- Most of the company’s sedans and wagons will no longer be sold in the States.
- Don’t get it twisted—this doesn’t mean Volvo is leaving anytime soon.
Volvo wants you to know that it’s definitely not leaving the U.S. Like, pinky promise, swearsies-realsies, not leaving. It just so happens that it’s taking a little break from selling a bunch of different models over here. But it’s still very much into us, so please don’t make this weird.
Earlier this week, the Swedish automaker hit pause on the sale of several foreign-built models in the States. Unfortunately, that meant cutting out models that it believes won’t be worth its efforts to continue selling abroad, meaning that most sedans and wagons are getting the axe. The blame? Surprise, surprise—it’s tariffs.
Photo by: Volvo
Speaking to Reuters, the automaker confirmed that it was working to pull most sedans and wagons from its U.S. portfolio as consumers just don’t seem interested. This isn’t the first time we’ve heard this; Nissan also recently killed off a pair of electric sedans meant for the U.S. as it was facing the “reality” of a shrinking sedan market.
The S60, for example, ended production last year. Volvo also halted sales of the S90, significantly sooner than expected (for context, Volvo announced earlier this year that it would halt sales of the Chinese-built sedan in the U.S. at the end of 2025). The automaker also won’t be bringing its 670-horsepower ES90 electric sedan to the States, as it announced that it was impossible to sell the car for a profit in the U.S. market.
And with the global discontinuation of the V90 imminent, the only remaining wagon sold in the U.S. will soon be the V60, which sells primarily in crossover-esque Cross Country guise.
Outside of the ES90, the only EV affected so far is the Volvo EX40 (XC40 Recharge), which isn’t as shiny or new as some of Volvo’s newer platforms. However, the automaker didn’t supply a reason why production had been temporarily halted when speaking with Reuters, only that sales would resume “shortly.” And let’s not talk about what tariffs did to the EX30, bumping it from a promised price of $35,000 to a starting cost of $46,195.
So let’s do some recapping. That leaves us with—check notes—crossovers and SUVs. It’s okay, you can sigh now.
But for Volvo, that’s what it believes is profitable in the U.S. market. Or, at least what the company can sell profitably after factoring in tariffs. Because Volvo is owned by Chinese automaker Geely, the brand does rely on the global market to piece together its cars. That could significantly affect the brand’s ability to price its vehicles competitively, even in the premium segment.
Photo by: Patrick George
It’s not hard to see why Volvo is doing this. Its North American sales are down 18% year-over-year for the second quarter, according to the automaker’s financial results released yesterday. Its year-to-date sales aren’t much better either—down about 10% from 2024.
Martin Lundstedt, the brand’s President and CEO, called 2025 “a wait and see mode” for its customers in the U.S., noting that everything from passenger car sales to commercial trucks is suffering. In fact, Lundstedt says that the automaker is “reducing production capacity [in North America] to adapt to the lower demand.” But it’s not giving up on U.S. production. The company also announced that it built its best-selling crossover, the XC60, in America to dodge tariffs.
For consumers, the move means fewer overall non-crossover-shaped options to buy. But for Volvo, it means keeping its foot in the door with one of the biggest automotive markets in the world. All things considered, it should be a wake-up call to car buyers that tariffs are, in fact, taking a toll on what brands can offer in the states and could one day even hit that model you’ve been eyeballing for your next purchase.
