Volvo is moving production from China to Europe ahead of possible tariffs

Volvo Cars has reportedly started shifting production of its China-made electric vehicles Europe just days before the European Union is expected to announce tariffs on government-subsidies cars. Volvo is also considering putting a freeze on exports of its China-made EVs for the European markets if the government bloc moves to introduce tariffs, The Sunday Times reports. The regulator, which oversees trade policy for the 27-member government body, can impose provision anti-subsidy tariffs nine months after the probe begins. At least one European automaker has called for the Commission to refrain from imposing the tariffs. Stellantis CEO Carlos Tavares has argued that they could fuel inflation and hurt sales across Europe, calling tariffs a "Trap." If the E. U. does impose new tariffs on China's EVs, it would join the U.S., which plans to quadruple duties on EV imports from the nation later this summer. A affiliated business group told the state-owned Global Times that tariffs of up to 25% could be raised on imported vehicles.