Volvo Group has disclosed intentions to cut up to 800 jobs at three of its U.S. plants over the next three months, attributing the decision to persistent market volatility and falling demand worsened by tariffs enacted by President Donald Trump’s administration. The impacted sites include the Mack Trucks facility in Macungie, Pennsylvania, along with Volvo Group locations in Dublin, Virginia, and Hagerstown, Maryland.
In a statement released on Friday, April 18, Volvo Group North America verified that between 550 and 800 workers would be affected. The company, a division of Sweden’s AB Volvo, employs nearly 20,000 individuals across North America.
The job reductions occur amid broader upheaval in the automotive and manufacturing industries, as evolving U.S. trade policies and a series of tariffs continue to elevate production expenses. Economists have highlighted the unpredictability of Trump’s trade approach as a factor eroding confidence among businesses and consumers, with growing worries about a possible economic downturn or recession.
Volvo reports that it is facing a drop in heavy-duty truck orders, fueled by unstable freight rates, expected regulatory shifts, and the increasing cost 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 decision represents another setback for an industry already contending with a tangled array of supply chain issues and variable market conditions, with other manufacturers similarly cautioning about potential price increases and disruptions linked to international trade conflicts.
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