The move aims to stabilize pricing and boost U.S. availability
of ConsumerAffairsApril 26, 2025
Key takeaways
- Volvo EX30 production now underway in Ghent, Belgium, to dodge heavy tariffs on Chinese-built cars
- The move aims to stabilize pricing and boost U.S. availability of the popular small EV
- Despite new European production, some early EX30s delivered to U.S. customers were still Chinese-built
The Volvo EX30, a compact electric SUV praised for its power, style, and affordability, has quickly gained international attention even earning a finalist spot for World Car of the Year. But production realities have clouded the cars promising start.
Initially built exclusively in China, the EX30 became tangled in a web of punitive tariffs imposed by both the Biden and Trump administrations, causing costly delays and logistical headaches for Volvo.
Now, the Swedish automaker owned by China’s Geely Holding Group has begun producing the EX30 at its long-established factory in Ghent, Belgium, offering much-needed relief for the models rollout in the U.S. market.
A historic factory
Volvos Ghent facility has been operational since 1965, currently producing models like the XC40, EX40, EC40, and the V60 hybrid wagon. In 2023 alone, it produced more than 186,000 vehicles. With a $227.7 million investment to modernize the plant, Volvo added capacity for the EX30, creating about 350 new jobs in the process.
The Ghent-built EX30s including the upcoming EX30 Cross Country variant are intended specifically for export to the U.S., reducing exposure to the over 100% tariffs levied against Chinese-built vehicles.
Although vehicles from Europe still face a 25% import tariff under longstanding Trump-era policies, it is far less punishing than the rates applied to Chinese imports.
Early deliveries, ongoing questions
While Volvo has been quietly delivering some Chinese-built EX30s to reservation holders and dealerships in the U.S., the company has managed to absorb the steep tariffs without raising the cars MSRP, maintaining affordability. A Volvo spokesperson declined to comment on profitability or whether future pricing changes are planned, suggesting that current prices will hold steady for now.
Production in Belgium should alleviate many of the pricing and supply concerns surrounding the EX30, although ramp-up timelines mean it could still be a little while before Ghent-built models dominate U.S. inventory.
One question that remains unanswered: whether the more affordable single-motor EX30 variant will also be added to the U.S. lineup now that European production is online.
Volvos EV strategy continues to evolve
Founded in 1927 and long known for its commitment to safety innovation, Volvo has been steadily transitioning toward electrification, with plans for 90100% of its sales to be either fully electric or plug-in hybrid by 2030.
The EX30 is a critical piece of that future. With European production underway, Volvo hopes the EX30 can finally deliver on its full promise in the U.S. market without tariff turbulence overshadowing its strengths.
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