Volvo has reportedly started moving production of electric vehicles (EVs) to Belgium in anticipation of the European Union's impending taxes on China-made cars.

Volvo Moving EV Production to Belgium

According to The Sunday Times, Volvo is moving its EX30 and EX90 models manufacturing from China to Belgium. The newspaper also reported, citing unnamed sources, that the automaker may relocate the manufacturing of some models bound for the United Kingdom to Belgium.

Among Western automakers, China's Geely-owned luxury car company Volvo is considered the most vulnerable to tariffs. The EU and China have been embroiled in a trade war, and as a result, Beijing has been the target of several anti-dumping investigations on claims of unfair subsidies.

According to Bloomberg, as early as this week, Chinese EV manufacturers might hear from the EU about whether or not they can anticipate provisional tariffs beginning in July that would increase import levies above the present 10% level.

Volvo has denied the Times' report, saying it is too soon to speculate on the implications of the inquiry's conclusion or any potential measures. A spokesperson told Bloomberg that the company's choice to construct the EX30 in Ghent, Belgium, underlines its goal to build vehicles where they sell the most.

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China Accusing EU of Suppressing Chinese Firms

Chinese officials said last week that their country would take measures to protect its interests after accusing the EU of trying to suppress Chinese businesses. According to Xinhua, which cited remarks made by China's Commerce Minister Wang Wentao, the charges of unfair competition against China are totally without merit.

Wang expressed his desire for the EU to forego trade protectionism and instead prioritize dialogue and collaboration. On the other hand, Chinese dairy businesses are reportedly gearing up to request Beijing to launch an anti-dumping probe against EU imports.

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