Volvo Cars is quietly stepping back from the U.S. market—at least when it comes to offering variety.

In a significant shift, the Swedish automaker has trimmed down its U.S. model lineup this year, a clear signal of the mounting pressure global car brands are facing as a result of steep new tariffs imposed by the U.S. government. These tariffs, introduced under the Trump administration, have made it increasingly difficult for foreign automakers to sell a wide range of vehicles in the country without sacrificing profitability.

Volvo, owned by China’s Geely Holding, told Reuters that it’s phasing out sedans and station wagons in the U.S. as consumer interest has declined. But it’s not just about shifting tastes—it’s also about economics. Import duties of 27.5% on European-built cars and over 100% on those made in China are forcing automakers to make tough calls. In Volvo’s case, that means halving its U.S. offerings and focusing almost entirely on SUVs.

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Models like the S60, which was built in Volvo’s South Carolina plant, are no longer in production. Sales of the China-made S90 have ceased as well, and plans to launch the new ES90 sedan have been shelved because the numbers just don’t add up. Even globally, Volvo is letting go of legacy models like the V90 wagon, responding to what it describes as “waning demand.”

It’s not just sedans and wagons taking the hit. The company’s European-made electric EX40 was also paused, though Volvo says it will return to the U.S. market “shortly,” without elaborating on the delay.

Interestingly, even the brand’s high-hope compact SUV, the EX30—which was poised to be a volume driver in the U.S.—is facing limitations. While it was expected to compete closely with Tesla’s Model 3 on price, only the more expensive dual-motor version (priced at $46,195) is currently available to U.S. buyers. The more affordable single-motor version, initially touted at around $35,000, remains off the table for now.

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Industry experts say the tariffs are forcing carmakers into a corner. They either absorb the higher costs themselves, pass them on to customers, or—as many are doing—simply stop offering those models altogether. And the consequences could be felt far beyond car dealerships.

As Andy Leyland of SC Insight puts it, companies are now trying to “eke more value out of the sales they do make.” But not everyone sees this as a winning strategy. Former Aston Martin CEO Andy Palmer cautions that forcing consumers into more expensive or less desirable options may drive them elsewhere—or out of the market entirely.

For Volvo, the road ahead in the U.S. is narrowing. With half the lineup gone and sedans phased out, the company is betting on SUVs to carry its future in America. But in a volatile global trade environment, even that path is far from certain.

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