Volvo’s flagship sedan, the S90, is reportedly facing discontinuation, sparking disappointment among car enthusiasts. The recent escalation of trade tensions under President Donald Trump has affected Volvo. China, in particular, faces a staggering 145% retaliatory tariff, further destabilizing the industry.
Even during the Biden administration, Chinese-made vehicles struggled with high tariffs in the U.S. market. However, the increased tariffs are causing trouble for Chinese manufacturers and third-party companies with production in China, leading to growing criticism. Will Volvo’s nearly 30-year legacy of flagship sedans come to an end?
Price Tag Jumps from 60,000 USD to 150,000 USD with New Tariffs
According to recent reports from Automotive News and other outlets, Volvo decided to discontinue sales of its large sedan, S90, in the U.S. A Volvo representative confirmed in an interview that the 2025 model will be the last, and orders will be stopped from next year. Under China’s Geely Group, Volvo manufactures the S90 entirely in China.
The S90 was previously priced at around $60,000 in the U.S., but with the 145% tariff, that would jump to approximately $147,000. Last year, Volvo only sold 1,364 units in the U.S., showing weak performance. Given the unrealistic tariffs, the company discontinued the model rather than adjust the price to match the tariffs.
Sedan Sales Shrink Further as S90 Bows Out
No Easy Fix With European Production
Volvo had previously announced plans to discontinue U.S. sales of its mid-size sedan, the S60. Despite the growing dominance of SUVs and crossovers, Volvo had maintained its sedan lineup. However, if the S90’s discontinuation becomes reality, Volvo’s sedan lineup will end in the U.S. market. Industry insiders say the Volvo S90 is the first casualty of Trump’s tariff escalation.
Even if the cars were produced in Sweden instead of China, the problem remains. The U.S. imposes a 27.5% tariff on European cars, which is lower than the 145% tariff on Chinese imports, but still too high for these vehicles to compete effectively in the U.S. market. As a result, Volvo and other European automakers are reportedly considering relocating their production bases from Europe to the U.S. to address this issue.
Tariff Fallout Could Delay EV Launches
Volvo’s New ES90 May Struggle to Reach U.S. Shores
Until factory relocations are complete, the industry will have to rely on existing exported inventory, suggesting the automotive sector is expected to face tough times. The discontinuation of the Volvo S90 is just the beginning, and it is predicted that more vehicles will be discontinued in the U.S. market due to high tariffs. The rapid escalation of tariffs in the U.S. seems to reduce the available choices for American consumers.
Meanwhile, Volvo recently unveiled the ES90, the electric sedan that will be its flagship. Since this model will also be produced in China, it is expected to face difficulty entering the U.S. market. The only way to sell the new car in the U.S. would be to make it at the South Carolina plant, but it remains to be seen which path Volvo will take.
