UPDATE: Trump Tariff War May Block Polestar 2 From U.S.


There’s still hope, however.

***UPDATE: Polestar has issued a statement to clarify that the announced $63,000 price for the Launch Edition takes the current tariff into account.  Its U.S. sales plan remain in effect. This detail was in our story already, but we’ve added the complete statement from the company at the bottom of the post.

When the Polestar 2 launched last week, it was quite clear that it would be sold in the U.S. There was a U.S. price ($63,000 for the high-spec Launch Edition), it was noted that the trick pixel LED headlights would not be available here because they the don’t conform to our outdated codes, and our country was mentioned as one of the regions a promotional tour would pass through. Now comes news of a possible problem with that plan.

According to the Financial Times, there is a chance the Tesla Model 3 competitor won’t make it to our shores at all. Polestar, you see, is a subbrand of Volvo which, in turn, is owned by Geely Though the new brand is headquartered in Gothenburg, Sweden, its car manufacturing site is in China. As you may be aware, the U.S. government, at the direction of President Trump, has put a number of tariffs in place for on goods coming from that country. These, then, raise the price of goods manufactured there and sold on these shores. Worries about an escalation of this trade war — there have been tit-for-tat tariffs from China — have raised the possibility of a strategy change.

Speaking to the Financial Times, Polestar CEO Thomas Ingenlath said the current price tag includes the 27.5-percent penalty for Chinese-built vehicles, and explained the situation thusly:

The business case for bringing the car to the US is highly dependent on the type of tariffs we have. It wouldn’t make sense to offer the car for a ridiculous price.

The tariffs are not permanent, of course, and there have been a number of changes to them as the two countries continue trade-centered talks. Meant to reduce a large trade deficit, new numbers just released seem to suggest the measures have been ineffective as that metric has gotten worse over the past two years.

It remains to be seen whether this new information will cause a tariff re-think anytime soon. Still, there is time for the things to change before the car’s original U.S. delivery timeframe of July 2020. There is even a chance the existing penalties could be reduced or removed, which would help Polestar better position its offerings in our market. Fingers crossed that this is the way forward.

Earlier today, Polestar issued the following statement to clarify its position:

Statement from Polestar regarding US market plans and pricing

Contrary to recent news reports, Polestar will be launching the new Polestar 2 in the important US market, starting in California and Washington State. The already-announced $63,000 USD guide price (before $7,500 federal incentive) for the Polestar 2 launch edition takes into account the tariffs as of 27 February 2019.

Polestar 2

7 photos

Source: Financial Times

Categories: Polestar

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49 Comments on "UPDATE: Trump Tariff War May Block Polestar 2 From U.S."

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(⌐■_■) Trollnonymous

Wait a minute, a Tariff is put in place on goods from a country that puts the same Tariff on US goods going to their country and it’s a bad thing???

Not news at all. It should’ve been that way a long time ago.


Au contraire my silly Trampanzee

Free trade is what makes the world go round,tarifs make goods more expensive,making customers UNable to buy,,thus leading to economy slowdown end posibly recesion,

Ronald Reagan was one Republican who understood this

Learn from history or repeat same mistakes,,

JC, China put 25% on US imports, thus forcing US manufacturers to set up China plants. How does this go around? It’s nothing but one way flow!

Our trade deficit with China has only increased due to tariffs and that’s after throwing money at farmers and letting manufacturers and exporters out to dry. The goal isn’t just to retaliate. The goal, I thought, was to improve the economy.

Is that the goal? If that’s not the goal, I don’t want higher consumer prices and less jobs at Tesla and Boeing.

You do realize that a tariff is essentially a tax on the citizens of the U.S.? You are effectively supporting higher taxes. No tariffs are best, but you would actually have to have someone capable of negotiations to accomplish that feat.

Typical uninforned m0r0n.
I guess all manufacturing should go to China and leave none for the US all so you can get less expensive items.
Some people are just plain Dumb.

Our companies produce in countries like China because there they can pollute (therefore it’s cheaper), which is harder to do at home. And because the workers have less security, insurance, etc. (therefore it’s cheaper), etc., etc. all to make products that WE want, for as low a price as possible.

In other words: we export the dirty work. A trade imbalance is a logical result of that.

July 2020? Isn’t that a bit far out there? EV-wise?

Not really, no.

Not really. It is about the same timeline as the Tesla Model 3 reveal and when the first Model 3’s started coming off the production line.

The Trump administration has been fervently antithetical to foreign companies in general and the Chinese specifically, as Trump hates them, and no aspect of his administration is based on rule the of law, treaties, honesty, nor the strictures of conduct, or decorum, but by his taste, think gaudy and coarse, and by his fiat, think belligerent and recalcitrant, so the chances of this not happening are not good.

I thought that Congress were only allowed to put tariffs since that’s its main function on monies and funds

Well, we also thought only Congress could approve funding for a Wall. Trump doesn’t have any respect nor understanding of the distinct roles and responsibilities of the three branches of government. And also doesn’t understand the constitution.

What does Congress have to with it?
Tramp promised Mexico will pay for the wall!

Or was that just another of his LIES

Trump has assessed tariffs in the name of “National Security,” an effective way around Congress.

Trump will be long gone by the time the Polestar is ready to ship. Mueller report (along with 10 convected Trump confidants to date) combined with massive trade deficits from Trump’s crazy trade wars with everybody is going to squeeze Trump out of office. Pence is more of a corporate lobbyist GOP’er and he’ll restore the US trade treaties as first order of business.

Well, there’s always hope, but Pence, that guy is just a suit, that’s why Trump took him, nary a brain in his head, no charisma, no ability to read or sway a crowd, He’s awful, even though he is the anti-trump. But only in a sense.
By convected you mean they run hot and cold, depending on conditions.
They were hot for Trump and now he has left them out in the col.

Pence is the only reason we still have Trump. No one That wants Trump out or gone wants that insane religious nutjub as president. Pence would try to make Christianity the law of the land.

That would be so hard, for who, exactly?
Those who don’t even respect Life?

I’d much rather buy an American made car anyway.

Go Tesla Go !!!

If trump stays in office chances are he will get worse and my next car will come from china, no matter if it is a polestar or a tesla.

Okay well good luck with that, I wish you nothing but the best.

Volvo has factories in US so let us hope Polestar builds their own too.

Another interesting development sponsored by the EDA, Environmental Destruction Agency, is the bending of information and outright lying to get reduced emissions schedule, put in place by Obama, rescinded, though they appear to be working, even with the greater share of less efficient vehicles, Trucks and Suvs, Trump wants to scuttle them, anyway:

Trump will never get most of his EPA deregulations through. He will be gone by the time the courts finally allow or disallow his anti-environmental attacks.

He’s been packing the courts like crazy with the most far right ideologues he can jam through. The courts are becoming weaker and weaker and aren’t at all a reliable check on the current administration’s actions.

McConnell is now changing the rules on judges instead of 30 hours of deliberations. It’s being reduced to 2 hours so the GOP can pack the courts with far right wing ideologies.

He’s already accomplish it. The Bear’s Ear in Utah is under investigation now. The reason the boundaries were changed because Zinke wants to let Uranium mining and by shrinking the size of Bear’s Ear mining companies can mine for Uranium.

Instead of tariffs, make car companies have to build their EVs here and partner with a domestic mfg. just like China requires. And batteries have to be sourced domestically.

You are absolutely correct! No one mentions 25%~300% auto tariffs China put on imports!

Tariffs on Tesla’s going into China are 15% now.
Which auto companies does China have 25%-300% tariffs on. John

Europe and Japan cars makers do build many of there cars in the US for US customers and some for export. That hasn’t stopped Trump from attacking Europe.

If they think the car will do well in the US, they could build it here, and avoid ALL tariffs…

They are not going to! No way! They have been accusing the windshield maker who utilized old Delphi plant in Dayton a traitor! Every labor dispute there is used as examples why not to set up shops in US!

Trade deficit with China went from 18.42 billion in January 2018 to 39.16 billion in January 2019.
Go it alone in a tariff war with China. Not a good move.
TPP and our allies was Obama’s plan, but this administration lives in an opposite Obama world.
US allies are now Russia, North Korea, Philippines and Saudi Arabia. Wow

What are you smoking? Russia isn’t anymore pro or anti US then they were 5 years ago, it’s status quo.
North Korean talks have achieved some good things, we haven’t had anymore nuke detonations or missile launches in over a year, that happened because of a tough aggressive stance and sanction…not because they hugged it out.
Saudi Arabia…if anything, they are not liking the US as much, because we have become a major player when it comes to oil production.
I like that Trump is fighting for America, and not just waiving the white flag and let China walk all over us when it comes to trade deals & intellectual property.
Stop drinking the kool-aid.

China doesn’t “walk all over us”. We are the ones that want cheap products and we are the ones that don’t want the pollution here, so we export pollution and import the products. They do our dirty work. And now suddenly it’s them who are the baddies?

Well said also free trade makes it possible to get the poorest countries to produce your products cheaply and if they try to improve their circumstances and ask for more money you can just start buying from another poor country. Cocoa, tea, coffee we’ve been doing it for years.

The tariffs will be history long before the sales of Polestar 2 in US will reach the peak.

Trump will be long gone by that time too.

If Tesla is building a manufacturing plant in China, why wouldn’t Geely build a manufacturing plant in the US?

Well, Volvo already has a manufacturing plant in the US. But all models can’t be produced on all continents for a relatively small manufacturer such as Volvo/Polestar, it wouldn’t make sense. Some markets needs to be import markets, and for Polestar 2 the US (and Europe) is one of them. Other models are produced in Europe or the US and needs to be imported into China.

Just another example of this administration working for the fossil fuel industry. Instead of investing in the future the GOP clings to the past. No wonder China is leaving the US in the dust.
Eliminate the fossil fuel subsidies instead orange man.

I won’t buy from the Chinese company no matter where they claim to “headquarter”, or what name they decide to slap on it.