Volvo Group is preparing to lay off up to 800 workers at three of its U.S. facilities over the next three months, citing growing market uncertainty and weakened demand—largely due to the impact of tariffs introduced under President Donald Trump’s trade policies.
In an official statement, Volvo Group North America said the job cuts will affect employees at its Mack Trucks plant in Macungie, Pennsylvania, as well as facilities in Dublin, Virginia, and Hagerstown, Maryland.
The company, part of Sweden’s AB Volvo, currently employs nearly 20,000 people across North America.
“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,” said a Volvo spokesperson in an emailed statement. “We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
President Trump’s aggressive tariff agenda, targeting auto parts and other imports, has significantly disrupted the global trade landscape, rattling both consumer and industry confidence. Economists have since raised red flags about a possible U.S. recession, attributing much of the economic instability to shifting trade policies.
Volvo is just the latest in a string of automakers and manufacturers feeling the squeeze. Industry leaders warn that rising manufacturing costs due to tariffs could lead to more layoffs and higher prices for consumers.
As global automakers try to adjust their supply chains and production strategies, the broader impact of trade tensions continues to cast a long shadow over the future of American manufacturing.