Volvo Group announced plans to lay off workers for three of its three U.S. facilities over the next three months, citing continued market uncertainty and tariffs introduced under former President Donald Trump’s administration have exacerbated demand. Affected locations include the Mack Trucks plant in Macungie, Pennsylvania, and the Volvo Group locations in Dublin, Virginia and Hagerstown, Maryland.
In a statement Friday, April 18, Volvo Group North America confirmed that it will affect 550 to 800 employees. The company is a subsidiary of Sweden’s AB Volvo and employs nearly 20,000 people in North America.
As U.S. trade policy changes and a range of tariffs continue to raise production costs, layoffs are amid greater turmoil in the automotive and manufacturing sectors. Economists point out that uncertainty surrounding Trump’s trade strategy is a factor that undermines corporate and consumer confidence, fearing a potential economic slowdown or recession.
According to Volvo, the company is struggling to cope with a drop in heavy truck orders, driven by instability in freight rates, expected regulatory changes and growing economic burden on tariffs. “We regret that action must be taken, but we need to align production with reduced demand for vehicles,” a company spokesperson said in an email cited by Reuters.
Volvo’s announcement marks a blow to an industry already under complex supply chain challenges and volatile market conditions, with other manufacturers also warning of potential cost increases and disruptions related to global trade disputes.
