Due to market uncertainties, Volvo Group plans to lay off up to 800 employees at three U.S. plants over the next three months as a result of President Trump’s tariff implementation.
According to Reuters, Volvo Group North America said in a statement that it has told employees it plans to lay off 550-800 people at its Mack Trucks site in Macungie, Pennsylvania, and two Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland.
The company’s website indicates that Sweden’s AB Volvo employs nearly 20,000 people in North America.
Trump’s latest tariff policies, which target imports from throughout the world, particularly car parts, have increased production costs and disrupted supply chains, forcing businesses to relocate or shrink staff.
“Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs,” a spokesperson for Volvo Group North America said in an emailed statement.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles,” the statement added.
Volvo Group’s layoffs are the most recent reaction from the automotive sector that is already struggling due to the president’s tariffs on specific parts, which are predicted to raise the cost of vehicle production. Similarly, Stellantis recently let go of about 900 workers.
