Recently, CEO of Volvo Cars, Hakan Samuelsson made a statement that could be big news for American customers. He clearly stated that the company will not bear the additional expenditure due to the new import duty of Donald Trump - the large part of this will have to be repaid by the customers.
The TRUMP administration has imposed 25% duty on imported vehicles and has spoken about up to 50% duty on goods coming from European Union. Volvo, which makes its S60 and EX90 models in the US, but the rest of the vehicles from abroad will be greatly affected by this policy. Obviously, the prices of Volvo vehicles can now increase, which may be a matter of trouble for American buyers.
This issue does not stop even Volvo. Companies like Aston Martin, Ford, and Subaru have also recently raised the prices of their vehicles. For example, Ford Maverick, which was the first budget train, now starts at $ 30,000. But General Motors has claimed that they will not increase the price despite an additional cost of $ 4 to $ 5 billion. Volvo's attitude is somewhat different - they believe that it is better to share the cost burden with customers. This may affect the sale of Volvo's vehicles, especially the Electric EX30 model, which may not be available in the US market due to charges.
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This news is big for American customers because it will directly affect their pockets. Volvo vehicles, which are famous for their safety and environment, already come at a premium price. If the price increases further due to the fees, then it will be difficult to buy them for the middle class. Also, if big brands like Volvo increase prices, then other companies can also do so, which can make the entire automobile market expensive. All these can increase the tension of the budget, for American buyers, especially for people thinking of taking a new car.
In such a situation, customers are advised to make their shopping thoughtfully. Some experts say that if you are thinking of taking a Volvo or any other imported car, take a look at the existing stock, as prices may be slightly low before the new fee is implemented. Also, some people believe that this situation may force companies to produce more in the US, which can reduce prices in future. But for now, American customers will have to be ready for rising prices from brands like Volvo and do their financial planning accordingly.