In light of continuing market uncertainty and falling demand, which has been worsened by tariffs implemented under President Trump’s administration, Volvo Group has declared intentions to lay off as many as 800 employees at three of its U.S. sites within the next three months.
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The Mack Trucks facility in Macungie, Pennsylvania, and the Volvo Group operations in Dublin, Virginia, and Hagerstown, Maryland are among the places that have been impacted.
The number of affected employees will range from five hundred to eight hundred, according to a statement released on Friday by Volvo Group North America.
Nearly 20,000 individuals across North America work for the corporation, which is a division of AB Volvo of Sweden.
The layoffs are part of a larger trend of uncertainty in the manufacturing and automotive industries caused by fluctuating U.S. trade policies and a succession of tariffs that are pushing up production costs.
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Economists are worried about a possible economic slowdown or recession, and they say both company and consumer confidence are suffering because of the uncertainty about Trump’s trade agenda.
Volvo claims that the company is seeing a drop in orders for heavy-duty trucks due to factors such as uncertainty in freight rates, impending changes in regulations, and the increasing cost of tariffs.
“We apologize for the inconvenience, but we must adjust our production to meet the decreased demand for our vehicles,” a representative from the company said in an email that was cited by Reuters.
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As if the industry wasn’t already struggling enough with supply chain issues and unpredictable market circumstances, Volvo’s news adds to the mounting pressure.
Other manufacturers have also issued warnings about possible price increases and disruptions caused by global trade tensions.