Volvo Cars said Chinese tariffs will prevent them from exporting S60 sedans made in South Carolina to the Asian country.
The Post and Courier reports the company told the Automotive Press Association that its new plant near Ridgeville will concentrate on serving the U.S. market and scrap plans to send its newest vehicle to China.
China in July upped its tariffs on American cars to 40 percent in retaliation to President Trump’s 25 percent tariff increase on car parts made in China. China is the world’s largest car market.
Volvo said they have not passed on the higher costs to buyers, which is hurting the company’s bottom line.
The company said it will still ship South Carolina made S60s to Europe.
Volvo has warned that 2,000 of the 4,000 proposed jobs at the Berkeley County facility will not materialize if tariffs continue to harm Volvo’s production.