Volvo is shifting production of XC60s destined for the U.S. from China to Europe in an effort to avoid a 25 percent tariff on Chinese imports.
"We will, of course, reshuffle here and take XC60s for the U.S. from our factory in Europe, and let China produce for other markets," Volvo CEO Håkan Samuelsson told Reuters.
Samuelsson went on to say that the shift has already begun.
Earlier this month, the Trump administration slapped a 25 percent tariff on $34 billion in Chinese imports, including Volvo's XC60 and S90. Unlike the XC60, the S90 is only built in China, leaving it in a difficult place. In turn, the Chinese government increased tariffs on imported U.S. vehicles to 40 percent.