Volvo Group announces up to 800 USes in the US because of the fall in demand, market uncertainties and direct impact of Trump’s tariffs
Volvo Group aims to reduce its staff by up to 800 employees in three industrial units in the United States over the next three months. The decision, announced last Friday (19), is attributed to market instability and concerns about demand, aggravated by the impact of commercial tariffs imposed by the Trump government.
Laywriting will affect Mack Trucks factory workers in Macungie (Pennsylvania) and group units in Dublin (Virginia) and Hagerstown (Maryland). The company, subsidiary of Swedish AB Volvo (VOLVB.ST), employs approximately 20,000 people in the US.
Trade War presses automotive sector
President Donald Trump’s protectionist measures, who challenge the current global commercial system since the postwar, continue to generate economic turmoil. Erratic tariff policy has undergone the confidence of consumers and investors, leading analysts to review the risks of recession in the world’s largest economy.
Volvo’s announcement reflects the challenges faced by the automotive industry, particularly affected by taxes on imported components. Experts warn that these tariffs should significantly increase vehicle production costs.
Demand for falling trucks
“Heavy truck requests continue to have a negative impact due to market uncertainty about freight tariffs, floating demand, possible regulatory changes and the effects of commercial tariffs,” explained a Volvo Group America spokesman in an official note.
“We regret having to take this measure, but we need to align production with the reduction in demand for our vehicles,” added the representative of the automaker.
With information from Reuters*
Source: https://www.ocafezinho.com/2025/04/20/nas-tarifas-de-trump-ate-gigantes-como-a-volvo-caem/
