Volvo faced two major setbacks on April 15 and 16. The National Highway Traffic Safety Administration (NHTSA) has issued a recall for certain Volvo models due to concerns about brake failure. Meanwhile,

Volvo is pausing the sales of select models in the U.S. over tariffs, but don't get it twisted and think that the brand is leaving altogether.

Tariffs are impacting the brand-new ES90 and Volvo said the high fees prevent them from profitably selling the car in the United States. According to one recent report, Chinese EVs now face a 247.5% tariff when imported into the United States. That’s an astronomical number and one that appears to have doomed the S90 successor.

Rising tariffs are pushing Volvo to make a big move. Discover how import costs are influencing the decision to bring production of its popular XC60 and XC90 SUVs to American factories.

Volvo’s Ridgeville, South Carolina plant builds the EX90 but, as we noted yesterday, buyers are few and far between. Through the first six months of the year, Americans only bought 1,972 of them. That compares to the 3,004 XC90s and 2,421 XC60s that were sold in June alone.

Volvo Cars has reported a group operating profit (EBIT) of SEK -10.0 billion for the second quarter of 2025, a result that reflects a persistently challenging environment for the global automotive industry.

Sweden's Volvo Cars said on Wednesday it would start producing its XC60 mid-size SUV in its plant in South Carolina, United States from late 2026.