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Cailianshe News, July 18 (Editor: Liu Rui)After the European Union announced a temporary anti-subsidy tariff on Chinese electric vehicles, European automobile companies suffered the consequences.

On Thursday local time, a well-known Swedish car companyVolvoVolvo released its second-quarter earnings report. Although Volvo's second-quarter profit was better than expected, the company lowered its full-year sales forecast. The reason behind this is the impact of the tariffs imposed by the European Union on Chinese-made electric vehicles.

Volvo cuts full-year sales forecast

Volvo reported that its core operating profit in the second quarter increased 28% year-on-year to 8.2 billion Swedish kronor (about 5.639 billion yuan), exceeding analysts' expectations of 6.7 billion kronor.

However, Volvo lowered its full-year sales growth forecast to 12%-15% from 15% previously.

"We want to tell the market and let them know we're still going to grow, but there are some headwinds," said Jim Rowan, Volvo's chief executive. "That's really driven by the tariffs."

For Volvo, the biggest impact of EU tariffs on the company is concentrated on one model:EX30 Electric SUVThe model is manufactured in China and is very popular in the European market, but rising trade barriers in the European Union are expected to hinder its sales.

In addition, on May 14, the US government announced that it would impose additional tariffs on a number of Chinese products, including an increase in tariffs on electric vehicles from 25% to 100%. After the announcement, Volvo Cars has said it will postpone the launch of the EX30 model in the United States.

Did the EU shoot itself in the foot with its tariffs?

On July 4, the European Union announced that it would impose temporary anti-subsidy duties on Chinese electric vehicles, with tax rates ranging from 17.4% to 37.6%, while continuing to negotiate with China on an anti-subsidy investigation into Chinese electric vehicles.

Mao Ning, a spokesperson for the Chinese Ministry of Foreign Affairs, said at a regular press conference on July 5 that China has repeatedly stated its position on the EU's anti-subsidy investigation on Chinese electric vehicles, and we strongly oppose it. We always believe that specific economic and trade issues should be properly resolved through dialogue and consultation. China will also take necessary measures to firmly safeguard its legitimate rights and interests.

Volvo CEO Jim Rowan said the company adjusted its full-year forecast due to "uncertainty around these trade tariffs and their impact on demand," but "our target remains at the high end of this range."

Volvo Cars produced 211,900 vehicles in the second quarter, outstripping sales, as demand for electric cars slumped in Europe, with the European Union's announcement this month that it would impose steep tariffs on imported Chinese-made electric cars expected to dent demand further.

Recently, the European Union held a round of "consultative votes" on the imposition of tariffs on Chinese-made electric vehicles. According to government sources, 12 EU member states, including France, Italy and Spain, expressed support, 4 EU member states opposed, and 11 countries, including Germany, Finland and Sweden, abstained from voting.