Trade tensions between Ottawa and Washington continue to disrupt automakers’ plans; Volvo is the latest player to adjust its strategy, confirming it will not sell the 2026 EX90 in Canada.
The reason is simple: the three-row electric SUV is assembled in the U.S., making it subject to 25-percent Canadian counter-tariffs. Those were announced by Ottawa in April, a few days after U.S. President Donald Trump imposed a 25-percent tax on vehicles imported from Canada — a move that immediately triggered a series of reactions in the industry.
A severely disrupted supply chain
The tariff standoff has forced several brands — including BMW, Hyundai, Mazda and Nissan — to temporarily suspend sending certain U.S.-made vehicles to the Canadian market. The withdrawal of the EX90 thus adds to a growing list of models put on hold, complicating inventory planning and dealer logistics.
Limited commercial impact for Volvo Canada
Even though the EX90 was presented as Volvo's electric flagship, its sales performance in Canada has been pretty marginal.
Priced starting at $113,770 in 2025, including delivery, the model was selling very slowly: only 143 units sold through November, representing about 1 percent of Volvo Canada's total sales. Clearly, the model's withdrawal is primarily symbolic and will not significantly affect the brand's volume in the country.
A situation that highlights market fragility
The EX90 case illustrates a broader problem: manufacturers are struggling to cope with political fluctuations and trade barriers, especially in a context where the transition to electrification demands stability and predictability. As long as the tariffs remain in place, other models could face the same fate, forcing brands to review their North American strategies.