Tariffs Kill the Launch of the Volvo EX90 in Canada

The troubled launch of the Volvo EX90 has hit another bump in the road that will see it stumble on its way to dealerships. Indeed, tariffs have caused the automaker to decide against selling the all-electric SUV in Canada.

The EX90, which is assembled at Volvo’s plant in Ridgeville, South Carolina, will not be sold to Canadian buyers due tariffs against vehicles built in the United States, reports Automotive News. The levy was introduced in response to wide ranging 25 per cent tariffs against Canadian goods that were introduced by the Trump administration.

The decision has led to fears of rising vehicle prices, as parts and vehicles cross borders numerous times before finding their way to consumers. It has also come at the cost of auto industry jobs, as plants in both the United States and Canada react to the change in trade policy.

The EX90 is Volvo’s flagship electric vehicle and showcases all of the automaker’s luxury, refinement, and its most cutting edge technology. Thanks to the addition of Lidar sensors (which can see the road better than cameras and form a three dimensional map of the world for a vehicle to navigate), the three-row SUV also has some of the most advanced driver assistance systems on the market.

However, the launch of the vehicle was marred by frequent software issues and infotainment glitches. Issues with the EX90’s digital key function and other foibles led AutoTrader Road Test Editor Dan Ilika to conclude that the SUV felt “like an incomplete product” when he drove it.

With a six-figure starting price and a long-delayed launch, the EX90 will not be missed by many. Sales figures were never expected to be enormous, so the SUV’s departure from the Canadian lineup will have a major impact on Volvo’s overall sales.

Fortunately for the automaker’s dealers, the EX90 is Volvo’s only vehicle that is assembled in South Carolina, meaning that the rest of the lineup should be safe for now.