Volvo Group is planning to lay off up to 800 workers at three U.S. facilities over the next three months, citing declining demand and uncertainty tied to President Donald Trump’s trade policies.
The cuts will affect roughly 550 to 800 employees at the company’s Mack Trucks plant in Macungie, Pennsylvania, and two Volvo Group operations in Dublin, Virginia, and Hagerstown, Maryland, a spokesperson confirmed on Friday. According to a statement, Volvo Group North America informed workers of the decision, which it attributed to market headwinds intensified by tariffs.
Additionally, the recent layoffs highlight ongoing workforce reductions in the automotive and heavy-duty trucking sectors, as companies struggle with rising costs of parts and materials caused by new tariffs. Industry analysts say these trade restrictions erode manufacturing profitability and heighten recession risks.
Notably, the Volvo Group, part of Sweden’s AB Volvo, employs nearly 20,000 people in the United States. Trump’s recent tariff policies—targeting global imports, including automotive components—have disrupted supply chains and raised production costs, pressuring companies to downsize or relocate their operations.
Economists have noted that the administration’s shifting trade stance has damaged business confidence and forced many companies to reevaluate their forecasts and workforce needs.
