Volvo ends S90 U.S. sales in response to rising tariffs

Volvo Cars is planning to end U.S. sales of the S90 sedan, which is manufactured in China, due to increasing trade tensions between the United States and China. The move follows the Trump administration’s decision to impose a 125 percent tariff on Chinese-made goods, including vehicles, as of April 9.

A person familiar with Volvo’s plans said that the company will cancel U.S. orders for the S90 starting next year. In 2024, Volvo sold 1,364 units of the S90 in the United States. The person, who requested anonymity because the decision is not public, said the model’s low volume does not justify the complications associated with the new tariff. A Volvo spokesperson declined to comment.

The S90’s discontinuation will remove Volvo from the U.S. large sedan segment. In 2023, Volvo had already discontinued the U.S.-built S60 sedan.

Volvo is expected to focus on higher-volume models for the U.S. market, such as the XC90, XC60, and XC40 crossovers. Nearly all vehicles sold by Volvo in the U.S. during the first quarter of 2025—96.8 percent—were imported, primarily from Europe and China.

The recent tariffs are part of a broader strategy by the Trump administration. On April 3, the administration enacted a 25 percent tariff on vehicles imported from most countries. Just days later, the tariff on Chinese-built vehicles was raised to 125 percent. While some duties were paused for certain countries, the auto tariffs remain in effect.

In an internal memo dated April 9 and reviewed by Automotive News, Volvo Car USA and Canada President Michael Cottone acknowledged the economic and geopolitical pressures facing the company. He stated that Volvo is increasing production of the EX90 electric crossover at its Ridgeville, South Carolina, plant and considering the addition of another model at the facility, which has a 150,000-unit annual capacity.

Although Cottone did not specify which model might be added, analysts suggest the XC90 as a likely candidate due to its shared platform with the discontinued S60. The Ridgeville plant is equipped to produce vehicles based on Volvo’s SPA1 and SPA2 architectures.

Volvo also plans to modify its incentive strategy in response to the tariff changes. While retail prices will remain unchanged for now, the company is reducing incentives on vehicles already in inventory or in port prior to the tariff announcement. The goal is to preserve funds for supporting future imports affected by the tariffs.

However, some dealers expressed concern that this strategy may hinder sales of existing inventory. One retailer, speaking anonymously, said the cutback in incentives could worsen already high inventory levels, citing the need for promotions to move older stock.

Despite global sales declines, Volvo’s U.S. deliveries increased 7.5 percent in the first quarter of 2025, reaching 33,285 units. Global deliveries fell 5.7 percent during the same period, with declines in both Europe and China.