By DCB Editorial, April 11, 2025
Volvo Cars is preparing to halt U.S. sales of its China-built S90 sedan as escalating trade tensions between the United States and China — including steep new tariffs from the Trump administration — reshape the automaker’s American strategy.
According to a source familiar with Volvo’s internal planning, the company will cancel U.S. orders for the S90 in 2025. Volvo sold just 1,364 units of the model in the U.S. in 2024, making it a low-volume player in a shrinking sedan segment. “Rather than deal with [the tariffs], they are just going to cut it out,” the person said.
Shifting Focus to High-Volume Crossovers
Instead, Volvo will double down on its best-selling SUVs — the XC90, XC60, and XC40 — to maintain its momentum in the U.S. market, where its Q1 sales rose 7.5% to 33,285 units. That growth stands in contrast to a 5.7% global sales decline, driven by weakening performance in Europe and China.
The move comes as the Trump administration imposed a dramatic 125% tariff on Chinese-made autos on April 9, a sharp increase from the existing 25% levy. With nearly 97% of Volvo vehicles sold in the U.S. currently imported, the company is particularly vulnerable to trade disruptions.
U.S. Production Ramps Up in South Carolina
To mitigate these risks, Volvo is ramping up output at its underutilized Ridgeville, South Carolina plant. In a memo to retailers, Volvo Car USA and Canada President Michael Cottone said production of the new EX90 electric crossover will increase, and the company is evaluating whether to build a second model at the facility, which has a capacity of 150,000 units per year.
Industry analysts suggest the XC90 would be the most logical addition to the South Carolina line. The factory can support both the SPA1 and SPA2 platforms, giving Volvo flexibility in shifting production closer to its largest markets.
Broader Retreat from U.S. Sedan Market
With the S90’s discontinuation, Volvo continues its retreat from the U.S. sedan market, following the end of S60 production last year. The company is repositioning itself around high-demand SUV and EV segments — a strategic pivot designed to preserve its U.S. presence while adapting to an increasingly volatile global trade environment.
In the short term, Volvo is responding to the new tariffs by reducing dealer incentives on Chinese imports already on U.S. lots or waiting at port, aiming to conserve resources for future imports that will face the full brunt of the trade taxes.
