You may be on the safer side for now it appears. Your car is assembled in Sweden, there is a 2.5% existing tariff. Just depends how many components are of Mexican, Canadian or possible Chinese manufacture. Tariffs would be placed on the % of parts manufactured in the Countries with applied higher tariffs now. SO I would assume it will increase the cost slightly depending on Country of Manufacture of the parts. Even a Volvo built in USA, SC would most certainly be affected as well. This was a good article. https://www.spglobal.com/automotive...en/rapid-impact-analysis/trumps-automotive-tariffs-would-impact-nearly-all-oems

 

Thank you, that's very helpful!

 

I'm hoping to have a great few months because of the fear of tariffs. I'm really not expecting much impact but people are freaking out about them. I'd understand in your case with a car on order, but really, it's not like all of a sudden Volvo can not just become non-competitive.

 

Dream on! That is 100% how tariffs function, and are also the only reason they are used. To make stuff from other countries non-competive to protect your own products that then will be more competive.

 

Of course, there is a lot of uncertainty with anything this administration does - but the discussed tariffs on Europe would certainly affect things. Mercedes stock is down 10% today, Stellantis 5%.

Frankly, if you look at inflation readings, tariffs are not even the biggest threat. Inflation will depreciate the dollar even before tariffs raise prices of cars.

But I do not fully understand how car orders work in the USA apparently - I am always too impatient to order a car. Did you order a car and not lock in a price? Otherwise, you can just walk away.

Something to consider - parts will go up in price as well.

 

Tariffs can act to deter or change activity, or be used to negotiate based on market strength. The US will never be competitive in the auto market so long as the Unions have the US manufacturers tied up. Volvo has a huge plant in SC, and they are only making their EX90 there now. They've built SPA cars in the past there. They can afford to take a short term hit on paying the tariffs while they reposition if needed. They can't afford to not sell cars because the price went up 10% when competitors did not.

 

You make some interesting points, but I respectfully disagree on virtually everything you have written.

Let me just point out one thing - Volvo increased base prices for the EX90 from $76,695 to $79,995 on June 26, 2024 "due to increased material costs" and directly referencing the 25% duty on batteries made by CATL (in China) which are used in the EX90s produces in South Carolina. Those same batteries are, as of March 4, subject to an additional 10% duty. You can speculate whether Volvo is able to eat up higher costs (I think not, but we can disagree on how much would the Chinese government bail out Geely if they kept selling loss-making cars in the USA...). But the evidence so far shows they are not willing to do it, able or not.

The idea that they cannot do it because it would affect their competitive position misses the fact that these tariffs will affect all car prices, regardless of production location or ownership. And the fact that the dollar is quickly turning into monopoly money. Inflation doesn't discriminate - at least, not across brands.

 

We are all in for some really screwed up times.... Nothing else to say really. Voluntarily allying with Russia and North Korea over the rest of Western countries, and royally trying to screw up its two neighbors for non-sensical reasoning...

To quote the WSJ who's normally on GOP side... Dumbest and unnecessarily trade war ever... None of this makes sense in any sort of way. This will only result in a less competitive USA worldwide, where no one will trust this administration for anything.

 

We are all in for some really screwed up times.... Nothing else to say really. Voluntarily allying with Russia and North Korea over the rest of Western countries, and royally trying to screw up its two neighbors for non-sensical reasoning...

To quote the WSJ who's normally on GOP side... Dumbest and unnecessarily trade war ever... None of this makes sense in any sort of way. This will only result in a less competitive USA worldwide, where no one will trust this administration for anything.

that's a lie. That's your minority opinion. And it is a minority. Your compatriots lost, get over it.
other countries have restricted our products and we have a massive trade deficit because of that.
That's ending. And the fentanyl traffic is ending.
"voluntarily allying"?......lol.
I get this same BS from Canadians on a boating forum.
laughable.

 

Also Volvo is very much seeing that EX90 price increase is costing them alot of the preorder sales. I don't think they'd make the same mistake on their mass market cars.

 

Because all the trade laws are very complicated, for something as globally sourced as a car, you'll have to wait and see. But no matter how you slice it, broad tariffs will eventually increase the cost at the consumer ends across the board, it's just a matter of by how much, not only the cost of buying cars, but also the cost of owning and keeping one.

 

The president has said he will institute reciprocal tariffs, so the tariffs on European cars would go from 2.5% to 10%...it remains to be seen if and when he will do this.

 

He is an idiot.

 

Since we're already down the political rabbit hole and keeping things mostly friendly. The US is uncompetitive for manufacturing, just like Europe is. Europe perhaps more so. As countries put more regulations in for human considerations and environmental considerations the cost of productions goes up, but the finished product to the market remains the same. While Trump is not articulating it this way, tariffs to make the US production more competitive also make the regulatory laws less restrictive and less of a burden. Yes, costs overall go up, but they have to in order to fund the regulations desired. As it has been, countries like the US and those in Europe make a more responsible product, but most in the market shop by price, not how a product is made. Every time you vote for a candidate that promotes environment or labor regulations in, you're voting for an increase costs. These might be ultra important regulations indeed, but they have to be accounted for in the market, because once some places have those requirements and others do not, it's not really a free market anymore. Just about every one of us has chosen a Chinese product over an American (or Canadian, or European) version because of cost, but it's not that the Chinese are just better at making them, they're cheaper at making them for all the reasons we pretend to be important. I say pretend, because if you felt they were important, you would buy the better made product for the higher price.

But how does Europe fit in all this? I've never done a deep dive, but my perception is European standards for environmental and labor are higher than in the US, shouldn't that mean they tariff us? Well sure, if their markets can support it yes. But I think where Trump is coming on the European front is the huge disparity in military costs. Believe it or not, most Americans don't want to be Team America, world police. We're tired of being the first ones in financially or with boots on the ground. I don't care at all where European state lines rest. As an Iraq war veteran I can not tell you I did anything that actually helped my country, or theirs. And while yes, there has been huge involvement from some allies, the overall spending for world peace has largely been in American shoulders since WWII. In that, I'm okay with using Tariffs to motivate countries into their own defense budgets (or better yet, seeking alternative means of peacekeeping). What does a pro western Europe stance do for the US?

So I don't mean to say that tariffs won't increase prices, they will, but prices NEED to go up if we are to continue to exist in a market where we care about environmental impacts, human labor considerations, and allow for equal products to enter the market without those. We, as the United States, need a more compensated role in the market to account for our defense spending of everyone else. Perhaps it is best if the US plays Team America as a matter of some geographical isolation and economy of scale, but then we should be compensated for it in our trade deals or some other means. But I don't think Volvo will be uniquely harmed, and that was how I took the OP question. Volvo's prices will go up if the market prices go up, but they will not go up higher than the market. People won't start going for Lincolns (boy they've gotten awful) just because they're cheaper.

 

I figured I'd stay away from politics, but....

As an Italian, I love it. For the past five decades, we have watched the rest of the world give free money to Americans. It was a great system - for you guys. You bought oil in the Middle East, cheap stuff in China, paid for it in dollars, then those countries gave you dollars back, for piece of paper that effectively say "we will pay you back one day, maybe, but probably not, because we never will be able to" - those things you call treasury bonds.

Over the last four decades, each US citizen consumed 40-50k more of goods and services than they produced (cumulative current account deficit divided by population). You effectively each got a free car, signed off by the Chinese Communist Party.

And, somehow, you decided this is a horrible and unfair system and are working actively to dismantle it. You can't make this stuff up...

 

I figured I'd stay away from politics, but....

As an Italian, I love it. For the past five decades, we have watched the rest of the world give free money to Americans. It was a great system - for you guys. You bought oil in the Middle East, cheap stuff in China, paid for it in dollars, then those countries gave you dollars back, for piece of paper that effectively say "we will pay you back one day, maybe, but probably not, because we never will be able to" - those things you call treasury bonds.

Over the last four decades, each US citizen consumed 40-50k more of goods and services than they produced (cumulative current account deficit divided by population). You effectively each got a free car, signed off by the Chinese Communist Party.

And, somehow, you decided this is a horrible and unfair system and are working actively to dismantle it. You can't make this stuff up...

Italy has a higher debt to gdp ratio than the US.

 

The whole purpose of what the current administration is doing is trying to pay down the debt and get things manageable, which will get ya'll paid. But the bond's aren't junk, ya can use them and trade with others too. Its not like the world treats them as having the zero value they do. The cheap oil and cheap products we get are because of the reasons I stated about differences in regulations. Americans SHOULD be expected to pay more for what they say are important things to regulate. I'm not opposed to higher prices and a lower standard of living. Either it will turn out to be good, or people will realize the regulations are over the top and adjust them. But regulating ourselves while going into debt just is unstainable and thankfully we are starting to realize that before rather than after it's too late.

 

I think the real issue here is that you honestly think less regulations is a good thing, across the board. I don't think you really believe that, as you wouldn't own the vehicles you have. This administration is all about profit. It see's anything in the way of profit as a bad thing. Seat belts have a cost, this administration accepts that, thankfully, but Volvo has created new and better technology. This administration has all but ignored that. Volvo is not the outlier here, every car company (even the chinese - our dark overlords) are making cars safer today. Why tell American car makers they can ignore safety regulations because of profits? See, that's the tough call right, and the prez or your elected official doesn't actually understand your position and in many cases the issue at all.

 

Fair enough. If you are not opposed to "higher prices and a lower standard or living," then there is no reason to fret. I just don't think most of your compatriots are on the same wavelength. And I will say - you are not wrong.

But, for the sake of me, I do not see how this is getting your debt repaid. The US imports $400 billion of goods. If you put 100% tariffs on that, and without taking any dynamic effects into account (which means no shift in purchases or new jobs in the USA of course, if you assume a shift, then you raise less money, but create jobs), then you raise $400 billion. That is awesome! Now, you still have to come up with another $35,000 billion, but, hey, it's a start ;-)

And I will not even go into "who really is paying tariffs" - because, well, last time it was US consumers. But I am sure this time it will be different, for some reason.

By the way, the Section 301 tariffs on China raised about $35 billion. That is, 0.1% of the debt burden.

 

And I will not even go into "who really is paying tariffs" - because, well, last time it was US consumers. But I am sure this time it will be different, for some reason.

I know you had to be laughing hard when you were typing the highlighted part above...I know I am!

 

first if all, I'm nobody's "Dude".
It's a lie to say the US. is "aligning" with russia....jesus...russia AGAIN!
And ya'll can spin any number/numbers you want anyway you want.
To the italian guy: make sure you and yours understand that the U.S. has NEVER been repaid for rebuilding europe after the devastation caused by insane idiots like Musso, ...ok ! So how's that for "free" money.
Plus, europe can NEVER repay the U.S. for the debt the U.S. has incurred in protecting said entity from "russia,russia,russia, threat post WW II.
So, ya'll wanna throw numbers around, throw ALL the numbers around. Don't pick what suites your narrative....
Oh, BTW, WE along with some british help, saved china's butt also.....
Don't lecture me on who/what is owed who/what.

 

You seem to miss the point, but I know, it's tricky.
Let me re-explain it to you.
We agree. Trump is making us Europeans rich. Keep doing what you are doing, it's the best thing that could happen to the rest of the world. So, for once, why fight? We agree.
Perhaps for different reasons, but why nitpick?

As Franz pointed out, if you guys want to reduce your lifestyle and spend a bit more, go for it. The rest of the world cannot help but thank you.

Btw, Europe stocks are up 20-30 percent since the election. How's your market doing?

 

Make Volvo great again find someone who's a better shot. Talk cars not politics all have a great day.

 

🤭...lol....naw, don't think so.....
seattle...🙄 figures🥱what else is new.

 

What else is new? I don't know . . the enduring stupidity of Trump and those that voted for him? America has always been the laughing stock of the world (which means that everyone outside of America has always thought of America as the worlds dumbest country). After Brexit that changed - the world thought that Britain could possibly be on a similar level. But then America elected Trump. And even after seeing what he did the first time . . the country then elected him again. America is NEVER going to live that down.

 

the U.S. had a 700 billion trade deficit in just one year ..ONE YEAR....under biden.....
That's gonna end.....
2 year olds throwing tantrums because they're finally being told no doesn't faze me...grow up.

I've never seen a cancer patient wax eloquently about chemo/ radiation therapy. Cancer fights the cure tooth and nails.
we expected the tantrums and the convulsions from ......ya'll.....it's laughable....

 

the U.S. had a 700 billion trade deficit in just one year ..ONE YEAR....under biden.....
That's gonna end.....
2 year olds throwing tantrums because they're finally being told no doesn't faze me...grow up.

I've never seen a cancer patient wax eloquently about chemo/ radiation therapy. Cancer fights the cure tooth and nails.
we expected the tantrums and the convulsions from ......ya'll.....it's laughable....

Genuinely curious, what is the obsession with trade deficit, because there is no established causality between trade balance and GDP much less of the general economic well being of a country.

Like I said earlier, trade balance is just a number, much like how much food you eat, it depends on a variety of things, and it's generally meaningless without getting down to the root cause. Trade balance simply is an indicator resulted from trade, and there is absolutely no guarantee that a trade policy that minimizes trade deficit will be great for the well being of the US economy.

Here is the fact, we have big and scary trade deficit number because we have the biggest economy in the world, I went to US FRED and pulled the trade balance, which is about $918B in 2024, meanwhile our nominal GDP in 2024 was about $29T, so our trade deficit makes up only about 3.1% of nominal GDP in the negative direction, and this ratio has been hovering around couple percentage + or - for a long time, and our ratio falls within the range of all OECD countries.
Don't just take my word for it, google "(0.012*Trade Balance: Goods and Services, Balance of Payments Basis)/Gross Domestic Product" and click on the FRED link, which should be the first one, number shown on graph can be interpreted as percentage.

FYI, Libya has a trade balance to GDP ratio of something like 28% in the positive direction, Congo is close to 18% in the positive direction, Nepal hovers at 28% in the negative direction, those are cherry picked examples, but my points still stand, trade balance is not a comprehensive view of the economic condition nor does it imply the economic well being of the country and its citizens to any significant degree, it's just a number, and it's meaningless without the context.

 

GFY

 

Hey Everyone - Both sides of this argument have valid points...and that's the challenge right now.
The post WWII, Bretton Woods era, world order has become obsolete and a new world order is thrashing its way to the surface. It's messy. And it's going to be messy for quite a while.
Both sides have key pieces to add to this next chapter. Fighting with each other will only add more pain to this process.

Now...lets get back to talking about cars!

 

Hey Everyone - Both sides of this argument have valid points...and that's the challenge right now.
The post WWII, Bretton Woods era, world order has become obsolete and a new world order is thrashing its way to the surface. It's messy. And it's going to be messy for quite a while.
Both sides have key pieces to add to this next chapter. Fighting with each other will only add more pain to this process.

Now...lets get back to talking about cars!

Both sides of this argument don't have valid points - and thats the real issue. At the end of the day, we have someone who clearly doesn't know what he's doing, implementing policies that he clearly doesn't understand, resulting in outcomes that he doesn't care about. But don't worry, he's going to make a country that was never great, somehow great again.

 

you are "ya'll". Throwing your fits, telling people with a different opinion to GFY, or they're stupid, or don't understand. Putting words in our mouths, .....just lie after lie after lie.
and ,JESUS CHRIST, RUSSIA-once again? lol. "clearly and absolutely" ...you need to lay off the cbd.
Under a current leaderships previous 4 years we had the greatest economy, employment, job performance, practically zero inflation.....you name it.....SINCE WW II !
"ya'll" are the people who try to shout people down on a forum resorting to insults and name calling because at the end of the day , that's all you have.
YOU and yours are NOT the majority, you are a vocal minority, you lost....get over it.
name calling doesn't bother me, I don't need a safe space.

 

you are "ya'll". Throwing your fits, telling people with a different opinion to GFY, or they're stupid, or don't understand. Putting words in our mouths, .....just lie after lie after lie.
and ,JESUS CHRIST, RUSSIA-once again? lol. "clearly and absolutely" ...you need to lay off the cbd.
Under a current leaderships previous 4 years we had the greatest economy, employment, job performance, practically zero inflation.....you name it.....SINCE WW II !
"ya'll" are the people who try to shout people down on a forum resorting to insults and name calling because at the end of the day , that's all you have.
YOU and yours are NOT the majority, you are a vocal minority, you lost....get over it.
name calling doesn't bother me, I don't need a safe space.

Never forget, its the majority 'that voted'. Did the majority of people entitled to vote in this country vote for Trump? The simple answer is no. And those that couldn't be bothered to vote have a lot to answer for. Either way, I think there may be something wrong with you - not sure what it is, but I'm sure a medical professional, or someone referred by RFK, can surely help you out. Adios amigo (cue the "I'm not your 'amigo', speak English you idiot" type responses).

 

" This refactoring/restructuring of government is far and away the worst thing he could have done when he came to office given he had just won, and he had won with a majority support. He's lost that, and will lose the rest once the truth comes out, which I speculate is massive fraud at a level never seen before. Elon may end up in jail and Trump's name will forever be seen as the PT Barnum who actually got power of our time."

an excellent post?......lol....rooting out billions of dollars of fraud is "the worst thing he could have done".
He hasn't "lost" anything, that's a lie.
Lol...the only massive fraud is what is now being uncovered.
"Elon in jail" ....for what? .....c'mon , conjure sump'tn up..🤭
"seen as PT Barnum"......hmm. Doing the same things and then some as he did before that produced the greatest economy ever....is fraudulent? .....
see what I mean by "ya'll".........name calling, labels, lies, .....ho hum.