Volvo Faces Turbulence Amid U.S.-EU Tariff Clash

Volvo Cars is bracing for a potential hit to its sales as the U.S. plans to impose a hefty 50% tariff on goods from the European Union. CEO Hakan Samuelsson conveyed that customers might bear the brunt of increased costs.

The tariff, recommended by U.S. President Donald Trump, is set to begin on June 1, potentially limiting the automotive company's ability to competitively offer its budget-friendly EX30 electric vehicle to American buyers.

Following the tariff announcement, investor concerns led to a 4.3% drop in Volvo Cars' share price at 1237 GMT.

(With inputs from agencies.)