Volvo chief calls for complete elimination of car tariffs
Hakan Samuelsson steps up calls to end trade war between US, China and Europe
The chief executive of Volvo Cars has called for the complete elimination of tariffs on cars between the US, China and Europe, stepping up calls to end a global trade war.
Hakan Samuelsson said removing barriers would bring consumers “more choice, better cars and more value for money” and lead to more “jobs, growth and prosperity” around the world.
Writing in the Financial Times, he said he was “deeply worried by the plans of world leaders to impose double-digit tariffs on car imports”, saying nations must resist the “siren call of protectionism . . . there are no winners in a trade war, only losers”.
Volvo is owned by China’s Geely and recently opened its first US facility in South Carolina. Geely is planning to hold an initial public offering later this year valuing the premium carmaker at $30bn, the Financial Times reported last week.
The car industry, which relies on complex supply chains and ships finished vehicles all over the world from a global network of plants, is particularly affected by trade disputes.
Tension between the US and China continues to rise, with Washington and Beijing set to introduce punitive tariffs of $16bn on August 23, on top of the $34bn imposed last month.
China will send a trade delegation to the US at the end of the month, in the first formal attempt at negotiations since Washington imposed tariffs on Chinese goods.
Earlier talks between the pair fell apart after negotiations failed to fulfil requirements set by the US.
The global trade war was sparked by US President Donald Trump, who was elected on a promise to protect American jobs, and is seeking to change a series of arrangements — from trade with China and the EU to the North American Free Trade Agreement — that he sees as putting the US at a disadvantage.
There are some signs of cooling in the US spat with the EU, with fresh talks and an agreement by the US not to impose fresh tariffs on cars imported from Europe.
But the IMF and several central banks have warned that the escalating confrontation over trade will hurt the global economy.
Mr Samuelsson said the company was “a textbook example of the benefits of free trade”, selling cars in more than 100 markets from production bases in China, Europe and the US.
“Free trade and open markets create jobs, wealth and economic growth,” he wrote. “It is what made our companies thrive, it is what allowed us to be successful and invest in overseas markets, providing a livelihood for hundreds of thousands of people around the globe.”