Volvo Loses $1.2 Billion Due to US Tariffs and Production Delays

Volvo Cars announced that US tariffs and production delays for its latest electric car will cost it $1.2 billion.

The automaker said in a statement to investors: “Due to import tariffs, the company is currently unable to profitably sell the Volvo ES90 in the United States, while margins are also under pressure in Europe for the same reason.”

In the United States, Volvo faces 25% tariffs imposed by US President Donald Trump in April, according to Agence France-Presse.

Volvo Cars, owned by China’s Geely Group, had planned to sell its luxury ES90 in the United States starting next year with a starting price of around $75,000.