Volvo Cars is the biggest newsmaker this week in regards to auto tariffs.
Volvo XC60 Production
Wednesday, the automaker announced it plans to begin U.S. production of the XC60 SUV at its plant in Ridgeville outside Charleston, South Carolina. The move is to avoid paying a profit-sapping 30 percent tariff on the imported models. XC60 production at the plant is slated to start in late 2026.
“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive US market, while supporting and creating American manufacturing jobs,” said Håkan Samuelsson, CEO of Volvo Cars. “It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the US market, where we are celebrating our 70th anniversary and have sold over 5 million cars.”
The XC60 is the brand's best-selling model globally and in here the U.S. Volvo says in the first half of 2025, XC60 sales in the U.S. rose by almost 23%. The SUV has made up over 33% of Volvo's U.S. sales in the first half of the year, with 25% of those being plug-in hybrids.
In other tariff-related news:
New modeling and analysis project a 4–8% increase in vehicle prices due to recent tariffs on cars, automotive parts, steel, aluminum, and metals—adding about $4,900 to $6,800 to the average new vehicle price in the short term. Copper tariffs alone could tack on another $5,700 per imported car because of rising metal costs.
Mixed production signals in U.S. manufacturing: U.S. factory output in June showed a slight increase (+0.3%), but motor-vehicle production fell 2.6%, underscoring how tariffs are damping auto manufacturing
August 1 deadlines loom for new tariffs on cars, metals (like copper), and on goods from the E.U., Mexico, and Canada, so keep an eye here. I expect some big announcements soon.
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