Sweden Eyes Deal in EU Tariff Tussle Over Volvo Cars

Sweden is hopeful of reaching an agreement with the European Commission to limit tariffs on imported Chinese electric vehicles. As tensions rise, Volvo Cars' shares increased by 4% following discussions about tariffs. Sweden plans to abstain from the voting, looking for individual solutions for auto industries.

Sweden is making a strategic move towards an agreement with the European Commission to mitigate the potential impact of tariffs on imported Chinese electric vehicles. As the EU prepares for a crucial vote, shares in Volvo Cars rose notably by 4%, marking it as one of the biggest gainers in the STOXX 600 index.

Foreign Trade Minister Benjamin Dousa disclosed that Sweden opted to abstain from voting after receiving promising feedback from the Commission about potential individual solutions for the auto sector, particularly targeting Volvo Cars.

Dousa emphasized Sweden's preference for a collaborative resolution between China and the EU, highlighting a prospective pricing agreement for Volvo's models that would retain profits within the auto sector, rather than diverting them to the EU through tariffs.

(With inputs from agencies.)