WASHINGTON: Volvo Cars has asked the Trump administration to exempt the company’s Chinese-made mid-size XC60 SUV from new 25 per cent tariffs, the latest automaker to seek relief from new levies on imports from China. The automaker confirmed on Friday it has sought an exemption with the US Trade Representative’s Office (USTR) for the popular vehicle that accounted for nearly a third of its US sales in August. “The imposition of the additional 25 per cent duty on mid-size SUVs would cause severe economic harm,” Volvo said in an August 16 letter to USTR that has not been previously reported.
“The burden of the 25-per cent duty imposed on vehicles imported from China will also be borne by American consumers.” Earlier this week, Volvo Cars and its Chinese owner Geely postponed plans to float shares in the Swedish carmaker, blaming trade tensions and a downturn in automotive stocks. The XC60 in August accounted for 31 per cent of Volvo’s US sales. Volvo said the XC60 was initially built only in Sweden and then it added production in China. From January to early March, Volvo was sourcing vehicles from both countries but since March US XC60s have only come from China, the company said. — Reuters