Volvo Group has announced plans to lay off as many as 800 workers across three of its United States facilities in the coming three months, citing ongoing market uncertainty and a decline in demand linked to tariffs introduced under President Donald Trump’s trade policies.
According to a report by Reuters, the company confirmed that between 550 and 800 employees would be affected by the decision.
In an official statement, Volvo Group North America explained that the layoffs will impact Mack Trucks’ facility in Macungie, Pennsylvania, and two other facilities located in Dublin, Virginia, and Hagerstown, Maryland.
“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 Volvo Group spokesperson said in an emailed statement to Reuters.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles,” the statement added.
Okay.ng reports that the announcement comes amid growing industry concerns over the rising cost of production and disruptions in global supply chains, largely attributed to the U.S. trade policy environment and ongoing tariff implementations.
Industry experts have warned that these tariffs, intended to protect domestic manufacturing, may be having the opposite effect, putting pressure on major manufacturers to cut jobs and scale back operations.
