Volvo Wants Chinese-Built XC60 Exemption From US Tariffs CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Volvo Wants Chinese-Built XC60 Exemption From US Tariffs

Volvo Wants Chinese-Built XC60 Exemption From US Tariffs

Sep. 17, 2018 3:15 PM ET by Jay Traugott / 13 Comments Will the Trump administration agree to this? Like all automakers, Volvo's crossover lineup is vital to its continued sales success, especially in the US. But unlike some of its competitors, Volvo's XC60 is not built in the US, but rather in China and Sweden. And that now poses a problem. Reuters reports that Volvo has asked the Trump administration for an exemption from new 25 percent tariffs specifically for the XC60, which totaled nearly a third of its US sales last month. "The imposition of the additional 25 percent duty on mid-size SUVs would cause severe economic harm," Volvo said in a letter last month to the US Trade Representative's office. "The burden of the 25 percent duty imposed on vehicles imported from China will also be borne by American consumers." Volvo Remember, Volvo's parent company is Chinese-owned Geely, so there is a political sensitivity here. Originally, the XC60 was built in Sweden and only more recently added the Chinese production line in order to satisfy growing demand. Apparently, since last March only XC60s built in China have been imported to the US. Looking ahead a few years, Volvo's newly opened production plant in Charleston, South Carolina could perhaps handle XC60 production, but right now it's only handling the new S60 sedan. In fact, Volvo even told the USTR that "over time given our global manufacturing footprint we could also anticipate production of the XC60s in the US as well." Volvo's request is also not without precedent. Specifically, GM asked the Trump administration last July for a tariff exemption for its Chinese-built Buick Envision crossover. However, GM suggested in its request a cap of 40,000 vehicles while Volvo asked the government for no cap. For now, the USTR has not ruled on either request. We don't have any idea as to when an answer will come, but this is certainly a more vital issue for Volvo than GM, which has a much larger vehicle lineup and can far more easily handle the situation. Volvo Volvo Volvo Volvo

Join The Discussion

Show Comments (13)

Gallery

8 Photos Tags: #Volvo News #Buick News #Government #Industry News #Pricing

Related Cars

Volvo XC60 Buick Envision LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top