Volvo Group has announced plans to lay off up to 800 workers at three of its U.S. facilities over the next three months, citing ongoing market uncertainty and declining demand exacerbated by tariffs introduced under the administration of President Donald Trump.
The affected locations include the Mack Trucks plant in Macungie, Pennsylvania, as well as Volvo Group sites in Dublin, Virginia, and Hagerstown, Maryland.
In a statement on Friday, Volvo Group North America confirmed that between 550 and 800 employees would be impacted.
The company, a subsidiary of Sweden’s AB Volvo, employs nearly 20,000 people across North America.
The layoffs come amid wider turmoil in the automotive and manufacturing sectors, as shifting U.S. trade policy and a series of tariffs continue to drive up production costs. Economists have pointed to the uncertainty surrounding Trump’s trade strategy as a factor undermining both business and consumer confidence, with concerns mounting over a potential economic slowdown or recession.
According to Volvo, the company is grappling with a decline in heavy-duty truck orders, driven by instability in freight rates, anticipated regulatory changes, and the growing financial burden of tariffs. “We regret having to take this action, but we need to align production with reduced demand for our vehicles,” a company spokesperson stated in an email quoted by Reuters.
Volvo’s announcement marks another blow to an industry already navigating a complex web of supply chain challenges and fluctuating market conditions, with other manufacturers also warning of potential cost hikes and disruptions tied to global trade disputes.
