Volvo is pulling the plug on its entry-level EV

• Volvo is discontinuing the EX30 and EX30 Cross Country by year's end, the company said.
• The car was first pitched as a $35,000 EV. Tariffs and trade wars complicated the price promise.
• Automakers have reorganized their US EV lineups — and many have focused on their foreign-made cars.

The Volvo EX30 will exit stage left later this year.

The Swedish automaker confirmed to Business Insider that it will end US sales of the EX30 — its smallest and least expensive electric model — and the off-road-styled EX30 Cross Country after the 2026 model year.

The company said the vehicles will remain in production for the US through this summer and should stay on dealer lots through the end of 2026.

"Volvo Cars' commitment to electrification and our customers remains unchanged," the company said in a statement sent to Business Insider.

The decision comes as several automakers reassess imported EVs following a turbulent stretch for the sector. A mix of tariffs, shifting incentives, and slowing demand has pushed companies to pause or cancel some electric models.

The EX30 is the latest example. For years, its US rollout was complicated by shifting trade policies.

When Volvo unveiled the compact electric crossover in 2023, executives pitched it as a rare affordable EV for American buyers, with a starting price below $35,000.

The vehicle was initially earmarked for production in China.

But in 2024, under the Biden administration, the US imposed a 100% tariff on electric vehicles imported from China, forcing Volvo to shift US-bound production to Belgium.

Additional tariffs imposed during the Trump administration on all imported vehicles raised the cost of bringing the car back to the US.

The consumer price climbed as a result. Today, the EX30 starts at about $41,740, including destination. The Cross Country variant — which starts around $50,000 — only began arriving at US dealerships earlier this year.

The model will continue selling in other markets, including Canada and Mexico.

Despite the change, Volvo said its broader electrification strategy remains intact. The company has said it aims to have 90% to 100% of its global sales come from vehicles with an electrical socket — a mix of plug-in hybrids and fully electric cars — by 2030.

The automaker is also preparing to add new options to its US EV lineup. Volvo expects its new electric SUV, the EX60, to arrive this summer with up to 400 miles of range and a starting price of around $55,000.

EVs under the microscope

Volvo's decision arrives during a difficult stretch for EV sales in the US.

According to CarGurus data, dealership EV sales were down 53.5% and 45.2% in the first two months of the year compared with the same time period in 2025.

Sales have been in a slump since September, when the federal government canceled the $7,500 tax credit for electric vehicles. Automakers have responded by removing cars from their US lineup — especially foreign-built vehicles.

Volkswagen has temporarily stopped sending the German-built ID. Buzz minivan to the US. Nissan axed the Japan-built Ariya. Hyundai also stopped sending the Korean-built standard Ioniq 6 to US lots.

Seth Goldstein, an EV industry analyst at Morningstar, said he expects more automakers to pull electric vehicles from the US market this year. But he also said lower-priced models could help revive the market in the coming years.

"The decision to discontinue the EX30 was part of a shifting EV landscape," he told Business Insider. "I expect we see US EV sales fall in 2026, but rise in 2027."

At the same time, rising gas prices could nudge some drivers back toward electric vehicles. As tensions in the Strait of Hormuz push up fuel costs, early indicators suggest shoppers may reconsider EVs.

"Early signs suggest that rising gas prices may be prompting some shoppers to reconsider EVs," Kevin Roberts, CarGurus' director of economic and market intelligence, previously told Business Insider. "Over the past several days, we've seen a lift in shopper views of EV listings."