Volvo Group says it is planning to lay off as many as 800 workers at three United States facilities over the next three months.
According to Reuters, the company said the layoffs are due to market uncertainty and concerns over demand in the face of President Donald Trump’s sweeping tariffs.
The publication said Volvo Group North America confirmed that between 550 and 800 employees would be impacted.
The vehicle manufacturer said the affected facilities include Mack Trucks sites in Macungie, Pennsylvania, as well as two Volvo Group facilities in Dublin, Virginia, and Hagerstown, Maryland.
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“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 spokesperson for Volvo Group North America told Reuters in an emailed statement.
“We regret having to take this action, but we need to align production with reduced demand for our vehicles.”
The latest layoffs come amid US trade policy and a series of tariffs, which continue to drive up production costs, according to experts.
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On April 3, President Donald Trump announced sweeping global tariffs on all imports into the country, as well as 14 percent on Nigerian goods.
Economists have warned that the US could enter a recession owing to Trump’s economic decisions.
The World Trade Organization (WTO) also warned that global trade volumes could contract by at least 1 percent due to the ongoing trade war.
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