Volvo EX30 avoids 147% US tariff threat by moving production from China

Volvo Cars has moved the production of its award-winning EX30 models, destined for US roads, from the Zhangjiakou plant in China to the Ghent plant in Belgium to avoid protectionist anti-Chinese tariffs, UNN reports, citing Electrek.

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Production of the Volvo EX30 began at the company's Ghent plant back in April, but the first cars were intended for the domestic Swedish market and export to Europe, but this move was not primarily motivated by avoiding tariffs. As Electrive reports, the company seemed content to continue importing its compact electric crossover from China and agreed to new 28.8% tariffs (previously 10%). However, the waiting time for car delivery from China turned out to be too long.

According to Arek Nowinski, head of Volvo Cars' European division, in 2024, Swedish and German buyers in some cases had to wait up to eight months for their EX30, Automotive News reports. However, once production in Ghent is fully launched, the waiting time should be reduced to approximately 90 days. This waiting time, as well as the price increase associated with tariffs, negatively affected the sales of the Volvo electric car, which was originally produced in China. For example, in 2024, the EX30 ranked third in electric car sales in Europe, but dropped out of the top ten by the end of the first half of 2025.

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"Now the car is produced in Europe, which means faster delivery times," Volvo Cars CEO Hakan Samuelsson told Automotive News. "We need to return to the EX30's sales and market share figures that were in place before the tariffs were introduced."

The EX30's move to Ghent is good news for American fans of Volvo's compact and agile electric car. Now that it is no longer produced exclusively in China, Volvo has decided to wait, "updating its product line in the US to better match market trends (read: crossovers) and the changing political situation (read: tariffs and inflation)."

"The reason? The Chinese-made version of the EX30 is practically unsellable in the US due to the introduction of 147% tariffs on cars imported from China. At the same time, tariffs on cars imported from Europe are only 15%, which allows the EX30 to remain in a competitive price range," the publication states.

Ghent and South Carolina are expected to play an increasingly important role in Volvo's American product portfolio — at least for the next three years, the publication writes.

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