Mercedes-Benz announced Thursday that it will manufacture a new vehicle at its Tuscaloosa, Alabama, plant by 2027, expanding its U.S. footprint as the Trump administration enforces steep new tariffs on imported vehicles and automotive parts.
Although the company withheld details about the vehicle, it described it as a “core segment” model. The Alabama facility currently produces popular SUV models such as the GLE and GLS, making it likely that the new addition will also be an SUV.
“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa,” said Jason Hoff, CEO of Mercedes-Benz North America, in a press release.Â
The move comes as automakers assess their production strategies under the weight of new trade barriers. Since April 3, all imported vehicles have been subject to a 25% tariff under President Donald Trump’s trade policy. A second wave of 25% tariffs on imported automotive parts is set to take effect Saturday. Though Mercedes-Benz did not directly attribute the new production plans to the tariffs, a company spokesperson emphasized the automaker’s “local-for-local” strategy—producing vehicles in the markets where they are sold.
The Tuscaloosa plant has been a critical hub for Mercedes-Benz, serving as the company’s global export center for SUVs. Approximately 60% of the vehicles assembled there are shipped overseas. By adding new production capacity in the U.S., the company may insulate itself from rising costs associated with the tariffs while reinforcing its presence in a key market.
The expansion also positions Mercedes-Benz to meet evolving consumer demand and market dynamics in the U.S., where SUVs remain dominant, and the cost of imported vehicles is expected to rise due to ongoing trade pressures.
