Volvo discontinues sales of the EX30 in the US

Volvo Cars has decided to discontinue offering its compact electric SUV, the EX30, in the USA. The company cites changing market conditions and financial factors as reasons for this decision. This move is likely a response to the halted U.S. electric vehicle incentives under the Trump administration.

Volvo ex production belgium ghent
Image: Volvo

The EX30, unveiled in June 2023, faced challenges in the US from the outset: its originally planned market launch in the United States for summer 2024 was postponed after the Biden administration imposed a 100 percent tariff on electric vehicles manufactured in China, which remained in place under the subsequent Trump administration. The high tariff also applied to the EX30, as it was initially produced exclusively at Volvo’s Zhangjiakou plant in China.

Instead, Volvo delayed most EX30 deliveries to the US until the model’s production launch in Ghent, Belgium, which began in April 2025. Prior to this, only a few units of the top-tier Twin Motor Performance model were shipped from China to the US. Since the start of production in Belgium, Volvo has served the US market from there, alongside European countries.

However, the EX30’s time in the US is already drawing to a close: according to a report by the automotive portal The Drive, US Volvo dealers have been informed by Volvo Cars that the EX30 will be withdrawn from the US market after the 2026 model year, including both the standard and Cross Country versions. All existing orders will still be fulfilled, but production for the US market will cease after the summer. Additionally, US dealers have until this Friday, 20 March 2026, to place any final orders for the EX30. Until now, the model was available in the US starting at $40,345 (including delivery charges), while in Germany, the starting price was €38,490.

Volvo Cars explained the decision to The Drive as part of a “a thorough evaluation of our business and operational strategies,” describing it as a “direct response to shifting market conditions and financial factors.” Key factors likely include the expiry of the US tax credit of $7,500 on 30 September 2025 and the relaxed emissions regulations for internal combustion vehicles introduced by the Trump administration.

Another contributing factor is US tariff policy: when Volvo Cars decided to produce the EX30 for the US market in Belgium, the applicable tariff rate was 2.5 per cent. However, just as production and deliveries began from Belgium, the US suddenly imposed an additional 25 per cent tariff. Although the tariff rate was reduced to 15 percent on 1 August 2025, it remains six times higher than the original calculation.

Importantly, the discontinuation of sales in the US does not mark the end for the EX30 overall. The model will continue to be available in markets such as Europe, Canada, and Mexico. Additionally, Volvo plans to continue selling the significantly larger EX90, produced in South Carolina, as well as the upcoming EX60, which will soon hit the market, in the US.

Volvo is following a trend set by other manufacturers that are scaling back their US electric vehicle portfolios in response to the Trump administration’s policy shift. Ford has discontinued the all-electric F-150 Lightning and a future electric pickup under the codename T3. Stellantis has abandoned plans for an electric version of the RAM-1500 pickup and written off $22.2 billion, primarily from its electric vehicle business. Honda has cancelled three electric models planned for the US market. Meanwhile, General Motors plans to discontinue the recently revived Chevy Bolt once again.

thedrive.com

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