The U.S. administration’s slew of import tariffs is starting to have widespread effects across the auto industry. And manufacturers, while remaining cautious, are beginning to explore – and implement – different ways of operating.
In hushed tones, many are telling us that the current situation is unsustainable and that within a year, there will be no more tariffs. However, plan for contingencies they must, as the White House occupant’s unpredictability makes it difficult to know what to expect.
Volvo is reportedly preparing to transfer some production of the XC60 and XC90 SUVs to the U.S. to avoid significant tariffs on those two models, both essential to the company’s success in the American market. This is according to Automotive News , which cites sources familiar with the matter.
Those sources say that XC60 production in the U.S. will begin in early 2027 at the company’s plant near Charleston, South Carolina. XC90 production will follow in October 2028.
Volvo XC60 | Photo: Volvo
One reason Volvo can afford to take that step is because its factory is not operating at 100-percent capacity. The company is even considering adding another model to its Charleston plant.
Volvo, to be clear, is not confirming anything. A company spokesperson declined to comment on the report, though they reaffirmed Volvo’s commitment to building its models where it sells them.
“Volvo is committed to its long-standing strategy of building where we sell, a principle that is more important today than ever. As part of this strategy, Volvo has already indicated that it is considering adding production of another model to its US plant, which has a capacity of 150,000 vehicles per year. We hope to be able to tell you more soon.”
The XC60 benefits from updates for 2026, similar to what Volvo gave the XC90 earlier. You can check out our 2026 XC60 test drive, in the T8 plug-in hybrid version.
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