Volvo CEO rejects China EV plunder claim as 100% tariff bites

Volvo Cars' CEO rejected a White House trade adviser's claim that Chinese automakers are plundering global markets, calling the characterization overblown.

Volvo Cars Chief Executive Hakan Samuelsson dismissed White House trade adviser Peter Navarro's accusation that Chinese electric-vehicle makers are plundering global markets, saying their success stems from effective strategy rather than unfair competition.

"The remarks go a bit too far," Samuelsson, chief executive of Volvo Cars, a unit of Zhejiang Geely Holding Group, said in an interview. "Companies that succeed in the EV sector must be respected."

Navarro had earlier claimed BYD Co., China's largest EV maker, was plundering global car markets. The U.S. currently imposes a 100 percent tariff on Chinese-made EVs, a policy that has kept BYD out of the world's largest auto market. The Shenzhen-based company has expanded across Southeast Asia, Europe and Latin America, building factories in Hungary, Brazil and Thailand to serve local markets.

The exchange highlights the deepening rift between the world's two largest economies over EV trade, with the U.S. arguing Chinese overcapacity threatens domestic industries while Beijing defends its industrial policy. The outcome could determine which automakers dominate the global EV market, projected to reach $1.2 trillion by 2030.

Samuelsson's defense of Chinese automakers carries weight given Volvo's position as a Geely-owned brand that competes directly with both Western and Chinese manufacturers. The Swedish automaker, which traces its roots to 1927, is transitioning its entire lineup to EVs by 2030 and has invested billions of dollars in electric platforms and battery technology.

The previous U.S. tariff escalation on Chinese goods in 2018 affected $250 billion in bilateral trade, with the average tariff rate rising from 3.1 percent to 19.3 percent, according to the Peterson Institute for International Economics. The current 100 percent tariff on EVs represents a fivefold increase from the 25 percent rate applied to Chinese auto imports before the latest round, which took effect in August 2024.

JPMorgan Chase & Co. analysts this week downgraded GAC Group to underweight while naming Geely Auto, NIO Inc. and BYD as top picks for the second half of 2026, pointing to continued confidence in Chinese EV makers despite trade headwinds. The analyst note suggests institutional investors see value in Chinese EV stocks even as trade barriers rise, with BYD trading at a discount to global peers on a price-to-earnings basis.

The U.S. is the only major auto market that has kept BYD out, according to a Bloomberg analysis. The company's global expansion strategy — building factories in emerging markets rather than relying solely on exports — has allowed it to bypass tariff barriers in multiple regions. BYD now operates manufacturing plants in more than 10 countries, including facilities in Brazil, Hungary, Thailand and India.

The broader implications extend beyond the auto sector. The U.S.-China trade dispute over EVs mirrors tensions in semiconductors, solar panels and batteries, where Washington has accused Beijing of using state subsidies to create overcapacity. China's EV exports to the U.S. remain negligible due to the tariff wall, but the dispute sets a precedent for how the two economies manage competition in strategic industries. If the U.S. maintains its protectionist stance while Chinese manufacturers continue gaining share elsewhere, the global auto industry could split into distinct Western and Chinese spheres.

This article is for informational purposes only and does not constitute investment advice.