Polestar Automotive Holding is banking on higher margins and lower costs from two new electric vehicles that won’t face punitive US import fees — unlike the Chinese EVs it currently sells.

The EV startup, which is backed by China’s Zhejiang Geely Holding Group Co. and its Swedish Volvo Car unit, plans to debut a US-manufactured Polestar 3 and a South Korea-built Polestar 4 over the next two years, both of which will avoid a 27.5% US tariff imposed on its China-made Polestar 2.