Volvo Cars is expected to report losses in the second quarter due to tariffs in the US and Europe.

Volvo Cars expects losses of around $1.2 billion in the second quarter related to its ES90 and EX90 models, due to tariffs and delays in launch.

According to the Swedish company revealed this Monday, Volvo Cars, controlled by Chinese Geely Holding, currently cannot sell its Volvo ES90, manufactured in China, profitably in the United States due to import tariffs, while the profit margins of the same model are also under pressure in Europe for the same reason.

The provision for losses also reflects significant delays in some past launches and additional costs in subsequent development, Volvo Cars stated. It is worth noting that Volvo Cars is expected to present its second-quarter results on July 17.