STOCKHOLM, Sept 23 (Reuters) - Volvo Cars

said on Tuesday it will begin producing a new hybrid model in

the United States by the end of this decade as the Swedish auto

maker continues to adjust to President Donald Trump's tariff

policies.

The new model, details of which have yet to be released,

will be designed for the U.S. market and help Volvo boost the

capacity utilisation at its South Carolina plant, the company

said in a statement.

Auto makers worldwide are scrambling to rethink their

production strategies to contend with President Trump's duties

on foreign cars, part of his wider policy to boost U.S.

manufacturing.

Volvo Cars' CEO said in April the company would produce more

vehicles in the U.S., and the group announced in July that it

plans to start producing its popular XC60 mid-size SUV at the

South Carolina plant from late 2026.

The factory currently builds only Volvo's fully electric

EX90 SUV and the Polestar 3, but production data shows that

these models take up only a small fraction of the site's annual

capacity of 150,000 vehicles.

News of the new hybrid model coincided with Volvo's 70th

anniversary in the United States.

Volvo, long positioned as an EV trailblazer with the aim of

phasing out all non-electric models by 2030, last year reversed

course and said hybrids would remain part of its lineup.

"By adding another model into production here, we'll take a

big step toward realising the full potential of our local

manufacturing investments and workforce," said Luis Rezende,

president of Volvo Cars' Americas operation.

A trade deal struck in July with the European Union cut U.S.

tariffs on European cars to 15%, but the agreement has yet to

take effect, with vehicles continuing to face a 27.5% levy.