Volvo weighs increasing US production, domestic sourcing to offset tariffs

Volvo Cars could increase U.S. production and seek out more domestic suppliers to offset higher import duties, especially on batteries for electric vehicles, President and CEO Jim Rowan said on a call with analysts on Feb. 6.

Rowan told analysts that Volvo has the capacity to expand domestic production at its plant in Ridgeland, South Carolina, which can manufacture up to 150,000 vehicles annually. At the time of the call, vehicles manufactured in Europe and exported to the U.S. were subject to a 2.5% tariff, he said. However, if that changed, the automaker would deal with the issue at the appropriate time.

On Wednesday, President Donald Trump said during a media briefing that he would soon announce a 25% tariff on vehicle imports and other products from Europe.

Trump said the European Union is a different situation than Canada because “they don’t accept our cars,” adding that the alliance of nations has taken advantage of the U.S.

“They don’t accept, essentially, our farm products,” Trump said. “They use all sorts of reasons why not. And we accept everything, and we have about a…