Volvo Group is planning to lay off as many as 800 workers at three US facilities over the next three months due to market uncertainty and demand concerns in the face of President Donald Trump’s tariffs.
According to Volvo Group North America in a statement, 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.
DAILY POST reports that the company, which is part of Sweden’s AB Volvo, employs nearly 20,000 people in North America.
Recall that Trump has upended the global trading system that has been in place for over 75 years with a plan for tariffs on products from across the world.
The president’s vacillating trade policy has reportedly undermined consumer and business confidence, and caused economists to raise their forecasts for a US recession.
Volvo Group’s lay-offs are said to be the latest response from a car and truck industry that is reeling from the Republican president’s tariffs on certain parts, which are expected to increase the cost of manufacturing vehicles.
“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.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles,” a spokesperson for Volvo Group North America said.
