Volvo Cars said it would book a non-cash impairment of about SEK 11.4 billion ($1.2 billion) in the second quarter, citing delays to key electric-vehicle launches and the rising cost of U.S. import tariffs. The charge deepens the Swedish manufacturer’s exposure to trade tensions, which have pushed Washington’s duty on European-made cars to 27.5 percent and complicated its rollout of the ES90 sedan and EX90 sport-utility vehicle. Despite the hit, Volvo reported second-quarter revenue of SEK 93.5 billion, beating analysts’ consensus of SEK 89.1 billion. Adjusted operating profit fell to SEK 2.9 billion, giving a margin of 3.1 percent, while the impairment swung the company to an operating loss of roughly SEK 10 billion and a basic loss per share of SEK 2.53. Investors focused on the better-than-expected underlying numbers, sending the stock up almost 8 percent in Stockholm trading. Chief Executive Officer Håkan Samuelsson said a SEK 18 billion turnaround programme that includes about 3,000 job cuts and reduced capital spending is “progressing as planned”. To cushion the tariff impact, Volvo will add production of its best-selling XC60 SUV to its Ridgeville, South Carolina, plant from late 2026 and trim its U.S. model line-up to vehicles that can be built profitably under the new trade regime. Samuelsson urged the European Union to lower its 10 percent duty on U.S. vehicles to foster “balanced” trade relations, but acknowledged the company cannot influence ongoing talks between Brussels and Washington. Volvo said demand remains soft and volatile, yet it expects cost reductions and a localized manufacturing footprint to restore margins as it readies a refreshed battery-electric portfolio.