How Auto Tariffs Are Shaping Volvo Vehicle Prices

Now that the U.S. government's 25% auto tariff has gone into effect, many are wondering – and rightfully so – what this will mean for the automotive industry. Despite having a manufacturing plant in the United States, Volvo prices will inevitably increase over time to cover the cost of foreign-made models and imported auto parts, neither of which are safe from the new tax. In this guide, we provide an in-depth look at how Volvo consumers can navigate the effects of the tariffs and plan for the future.

Wynne Volvo Cars of Hampton is here to address your questions and concerns and find you the best deal despite it all.

What Is a Tariff?

Let's start with the basics: A tariff is an import tax imposed by one country on another's exports. The 25% auto tariff levied by the Trump administration in the spring of 2025 affects all other countries that are shipping automotive goods into the United States, including China, Mexico, and Canada. Various tariffs may also apply to all industries, but the auto tariff is among the highest rates we've seen. For the industry, this means that the prices of vehicles (new and used), automotive parts, services, and even insurance premiums are subject to increase. At the time of writing, we are still waiting to see the full impact of increased tariffs.

Who Pays a Tariff?

The company or organization that imports a product subject to a tariff pays it. In this case, auto manufacturers in the United States will generally be responsible for covering the 25% surcharge for all imported cars. While many businesses, including manufacturers, will do their best to mitigate price increases, everyone will feel the effect at least a little bit. While we can't predict the long-term effects or how long the tariff will last, consumers should anticipate inflated prices for new cars, pre-owned vehicles, parts, service, maintenance, and insurance.

What Will the Auto Tariffs Mean for Volvo Buyers?

Volvo Cars is working overtime to cushion the impact of the auto tariff on U.S. buyers. While it is too late to stop the immediate influence of these new import taxes, the automaker is hopeful that the market will stabilize once it reduces its dependence on imported products. The company also aims to transfer much of its manufacturing to the United States in the near future to avoid future issues with import tariffs. However, it is still too early to tell the scope of this initiative.

The question on everyone's mind is: Is it better to act now or wait for the economy to reach equilibrium? At Wynne Volvo Cars of Hampton, we encourage customers to buy early before the full effect of the tariffs takes place. We don't know exactly how long the 25% tax will last, but we do know that the ramifications are here to stay, at least for a while. That said, there are still plenty of Volvo models for sale that are unaffected by price hikes. We invite you to take advantage of our available inventory at the current price point!

How Can Volvo Customers Take Advantage of the Auto Tariffs?

When market changes occur, dealerships tend to offer specials in order to offload current inventory. Volvo drivers can take advantage of this sudden shift and buy soon while prices remain stable. Don't miss your chance to enjoy the last of the inventory in our showroom!

Another "shopping hack" we recommend is to focus on Volvo vehicles that are manufactured in the United States. Volvo Cars has a plant in Charleston, South Carolina, that assembles the Volvo S60 and fully electric Volvo EX90 SUV. Although the high cost of imported materials and parts for these models is unavoidable, the Volvo S60 and Volvo EX90 may not be as impacted as other Volvo offerings, which are imported from foreign factories.

Take Your Pick From Our Robust New and Used Volvo Inventory

Wynne Volvo Cars of Hampton stocks a wide range of new and used Volvo models (in addition to pre-owned vehicles from other known brands). Representing the height of timeless Scandinavian design, advanced safety, and mild-hybrid, plug-in hybrid, or all-electric performance, our Volvo inventory has something for every lifestyle. Start shopping by viewing our Volvo models in stock online, then plan your visit to our showroom by booking a test drive in advance.

When working with our team, you can also request to tour the pre-owned inventory, which, at the time of this writing, still has models unaffected by the tariffs!

The Perks of Choosing Our Volvo Dealership

Despite the ever-shifting global trade landscape and inevitable inflation in the automotive industry, there are always flexible ways around high prices – at least, Wynne Volvo Cars of Hampton believes that! We have always been dedicated to offering exceptional deals to our customers, and there are still ways to save. You could, for instance, choose one of our new Volvo deals to offset the cost of a higher trim level you're eyeing. Or, take advantage of our trade-in program, where you can leverage the value of your current vehicle against a new one.

Shopping at Wynne Volvo Cars of Hampton means enjoying a customer-driven business at every turn. We hope you'll choose our store as your rock in the unpredictable tides of global trade.

Wynne Volvo Cars of Hampton Is Your Steadfast Local Dealership

At Wynne Volvo Cars of Hampton, we see ourselves as more than a dealership. We are a popular local business that puts customer connection over sales. We are a trusted hub for automotive service and excellent specials. And, perhaps most importantly, we are a resource for all things relating to Volvo Cars. We take this role seriously and invite you to lean on our dealership as we all navigate the massive shifts in the automotive industry together. Please give us a call or visit us – we are available to answer questions and bring you up to speed on tariff-related news.

At this time, our best advice if you're ready for a new car is to buy it soon. Wynne Volvo Cars of Hampton believes in a seamless process, wherein we guide you as you apply for financing or value your trade-in. Contact or visit us to learn more.

Frequently Asked Questions

Are Volvo vehicles made in the U.S. affected by tariffs?

While some Volvo automobiles are made in the company's South Carolina plant, which opened nearly a decade ago, the U.S. auto tariffs and other new levies will still impact on the cost of those models because materials and auto parts are still imported from other countries for use in the Charleston factory. Volvo Cars is working to shift manufacturing to the United States, but this will not happen overnight.

Will tariffs make new Volvo vehicles more expensive?

There will be a Volvo tariff effect that reverberates through the entire supply chain. The 25% import tax applies to the entire automotive industry, including car parts and the raw materials used in Volvo production. The price increases will impact not only new automobiles but also pre-owned cars, parts, service prices, and insurance premiums. At the time of writing, the best approach is to buy sooner rather than later.

How will tariffs affect Volvo parts and servicing?

The 25% car tariffs are expected to have a ripple effect through the entire auto industry. Since many parts are shipped from abroad, the cost of production will rise. This will influence pricing for service center owners. Although these changes are inevitable, your best bet is to find a local Volvo dealership, such as Wynne Volvo Cars of Hampton, that is looking for ways to cushion customer impact.

* MSRP is the Manufacturer's Suggested Retail Price (MSRP) of the vehicle. Unless specifically indicated in the advertisement, MSRP does not include taxes, fees or other charges. Actual dealer pricing may vary. Consult your dealer for more information and complete details.
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