Trump administration tariffs on the automotive industry remain in effect. That will force automakers to make some tough decisions. Some manufacturers are suspending shipments to America for now. Others are putting unprofitable and poor-selling models on the chopping block. We’ve seen a couple of Mexican-built luxury SUVs that may go on permanent hiatus. And according to Automotive News, tariffs will kill off the S90 sedan, ending sedan production for the American market (pending the potential arrival of the ES90 electric car).
Why Volvo Is Killing Off The S90 Sedan
Volvo may have been considering dropping the S90 from the lineup anyway. The brand has not been selling many of them. The brand sold 377 units in Q1 of 2025. That’s a 46.1 percent increase year over year from Q1 2024. But it also represented a little over 1 percent of American sales. For perspective, Volvo sold around 25 times as many XC90 crossovers during the same span.
Compounding the problem with the S90 is that it’s manufactured in China, which, at least as of this writing, is facing a 125 percent tariff on imported goods. The effort to bring the S90 over to America would be more trouble than it was worth.
How Volvo Will Handle U.S. Tariffs
Volvo is facing significant exposure to U.S. tariffs. Volvo currently builds only one vehicle in the United States, the EX90 electric crossover. But according to Automotive News, the brand plans to increase American production. Its facility in South Carolina can produce up to 150,000 vehicles per year and has excess capacity. Volvo plans to increase EX90 production and move production of another vehicle — likely the combustion XC90 — to the plant.
Most Volvo production for America happens at its facilities in Sweden and Belgium. A deal to lift trade barriers with the European Union would be beneficial.
Key Takeaways
- Trump tariffs hit the automotive world and China hard
- Volvo builds the S90 sedan in China
- The S90 reportedly is leaving the U.S. market
- That would mean no Volvo sedans are currently in production for America
- Wagons could be next to depart.
TopSpeed’s Take
Trump’s tariffs aren’t good for automakers. European brands like Volvo, which, naturally enough, build many cars in Europe for export, are particularly vulnerable. The natural response at Volvo and other automakers will be to protect models that sell well and profitably — luxury SUVs — and cut models that can’t. We aren’t surprised to see the S90 depart the American market. We won’t be surprised if Volvo’s wagons — already on the chopping block with Volvo’s EV transition — leave the American market shortly.
Automotive tariffs may achieve Trump’s stated goal of returning automotive production to America in the intermediate to long term. But if the tariffs stick, there will be fewer options for American consumers from brands like Volvo, and those options will be more expensive.
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