Li Shufu: Volvo and Geely may suffer setbacks due to trade war

According to foreign media reports, Volvo Cars' controlling shareholder Li Shufu has warned of the adverse effects of a trade war. Li Shufu said that the Sino-US trade dispute will hurt consumers and automakers. If trade tensions escalate, both Volvo and China's Geely brand will be hit because both companies import and export cars between China and the United States.

Li Shufu said at an event in Hong Kong on June 28 that consumers will be hit by rising car costs as automakers need to build factories in each market to avoid tariffs. "If the United States imposes import taxes on Chinese cars, it will be a bad thing for Chinese automakers; at the same time, if China keeps increasing tariffs, Volvo's U.S.-made vehicles exported to China will be adversely affected."

A Chinese billionaire’s controlling stake in a Swedish automaker is a prime example of the interconnectedness of global auto manufacturing and how trade tensions are affecting various players in the industry. Volvo has been making the S60 midsize sedan in China and importing it to the United States; now it is starting production of the model at a plant in South Carolina, giving the automaker a little cushion from the growing trade dispute.

Li Shufu said, "Low tariffs can ensure global integration and benefit consumers. If the trade war continues to escalate, consumers will be hurt in the end because they have to spend more money to buy cars."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.