Volvo Group plans to cut up to 800 jobs at three U.S. plants over the next three months due to market uncertainty and demand concerns stemming from U.S. President Trump's tariffs, a spokesman said on Friday.
Volvo Group North America said in a statement that it has informed employees that it plans to cut 550-800 jobs at its Mack Trucks plant in Macungie, Pennsylvania, and two Volvo Group plants in Dublin, Virginia, and Hagerstown, Maryland.
According to Volvo's website, the company is affiliated with Swedish Volvo and has nearly 20,000 employees in North America.
Trump's plan to impose tariffs on products from around the world upends the 75-year-old global trading system. His wavering trade policies have dampened consumer and business confidence, leading economists to raise their forecasts for a U.S. recession.
Volvo Group's job cuts are the latest reaction from the car and truck industry, which is grappling with Trump's tariffs on certain parts that are expected to increase vehicle manufacturing costs.
"Heavy-duty truck orders continue to be negatively impacted by market uncertainties such as freight rates and demand, possible regulatory changes and the impact of tariffs," a spokesman for Volvo Group North America said in an emailed statement. We regret having to take this action, but we need to adjust production to the reduced demand for vehicles.