Volvo to Discontinue EX30 in U.S. After Tariffs Raise EV Pricing

Volvo will discontinue U.S. sales of its smallest electric vehicle, the EX30, later this year as the automaker reshapes its EV lineup amid changing market conditions. The move comes after rising tariffs and shifting incentives pushed the model’s pricing well above its original target, reducing its competitiveness in the U.S.

The development was confirmed in a report by Business Insider, citing a company statement.

Volvo to end EX30 sales in the U.S. after 2026 model year

Volvo said it will stop selling the EX30 and EX30 Cross Country in the United States after the 2026 model year, with production for the U.S. continuing through the summer and dealer inventory expected to last until the end of the year.

The EX30 was initially introduced in 2023 as a potential sub-$35,000 EV, positioning it as one of the most affordable electric crossovers in the U.S. market.

However, trade policies significantly impacted that strategy. The vehicle was originally planned for production in China, but a 100% U.S. tariff on Chinese-made EVs forced Volvo to shift production to Belgium.

Additional tariffs on imported vehicles further increased costs, pushing the EX30’s starting price to about $41,740, while the Cross Country variant approached $50,000.

Despite the U.S. exit, Volvo confirmed the model will continue to be sold in other markets, including Canada and Mexico.

Tariffs and slowing EV demand reshape U.S. lineup

Volvo’s decision reflects broader changes across the U.S. EV market, where automakers have been reassessing their strategies.

A combination of tariffs, reduced incentives, and slowing EV demand has led several manufacturers to pull back on imported electric models.

Industry data cited in the report showed dealership EV sales declining significantly in early 2026 compared with the previous year. The removal of the $7,500 federal EV tax credit has also weighed on demand.

Other automakers have taken similar steps. Volkswagen paused U.S. shipments of the ID. Buzz, Nissan discontinued the Ariya, and Hyundai halted imports of the standard Ioniq 6.

Volvo said its broader electrification plans remain unchanged, with a goal for 90% to 100% of global sales to be electrified by 2030, including both fully electric vehicles and plug-in hybrids.

The company is also preparing to introduce new EVs in the U.S., including the upcoming EX60 electric SUV, which is expected to offer up to 400 miles of range and arrive later this year.

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