The effects of changing U.S. government policy regarding electrification continue to make themselves felt. Today came confirmation that Volvo is pulling its new EX30 from the American market after the 2026 model-year, only its third since it initially launched for 2024.
Staying in Canada
Take note, however, that Volvo Canada is taking its own path and will keep the small electric SUV on its roster. And part of the reason for that, is the production “path” the model has taken since its launch.
Initially, Volvo assembled the EX30 in China. But the100-percent tariff imposed on Chinese-made EVs by the U.S. administration of Joe Biden in 2024 made that untenable. Canada followed suit on that tariff, remember. So Volvo shifted production of EX30s destined to the U.S. and Canada to its plant in Ghent, in Belgium. Problem solved, or so thought Volvo.
Then came another 27.5-percent tariff imposed by the Trump administration on vehicles made in Europe. While less onerous, that levy was enough to send the retail price of the EV soaring to over $46,000 USD – nowhere near the sub-$35,000 price tag Volvo had promised for what is touted as a base-model Volvo EV.
Canada imposes no equivalent tariff on European-made imported vehicles, so Volvo Canada is able to keep the selling price where it feels it needs to keep it to be competitive.