New products and launches took a heavy toll on Volvo’s third quarter earnings report. The brand announced today that despite global sales rising a healthy 14% last quarter, its operating income fell by roughly 50% in the same period.

This coincides with the launch of the critically acclaimed S60, but also with new emissions rules in Europe and an unpredictable tariff scheme (probably too strong a word) in America.

Volvo is in good company as many brands struggled in Europe thanks to the WLTP, which tests for emissions much more rigorously than the continent's previous emissions test. Abiding by those rules is proving to be a sales challenge across the board.

Going forward, the mounting trade tensions between the US and China are a concern for Volvo.

"The best way forward should be open, balanced trade with no car import duties for EU, U.S. and China," says Hakan Samuelsson, Volvo CEO.

China in particular has taken a special importance as Automotive News reports that Volvo is moving XC60 production from Belgium to China as a cost-saving measure. Given the model’s importance in all markets, including the US, it will be important for tariffs not to price it out of the market.