STOCKHOLM, May 23 (Reuters) - Volvo Cars

CEO Hakan Samuelsson said on Friday that customers would have to

pay a large part of tariff-related cost increases, and that it

could become impossible to import the smallest cars in the

company's lineup to the United States.

U.S. President Donald Trump on Friday said he was

recommending a straight 50% tariff on goods from the European

Union starting June 1, saying the EU has been hard to deal with

on trade.

Samuelsson in an interview told Reuters that a 50% tariff

would limit the ability of Volvo Cars to sell its Belgium-made

EX30 electric vehicle in the United States.

But despite the threats of rising tariffs, Samuelsson said

he was hopeful that Europe and the United States will soon come

to an agreement.

"I believe there will be a deal soon. It could not be in

the interest of Europe or the U.S. to shut down trade between

them," Samuelsson said.

Shares in the company were down 5.0% at 1257 GMT.