Volvo Group has announced its decision to lay off between 550 and 800 workers across three of its U.S. facilities over the coming three months. The Swedish-owned company cited ongoing market uncertainty and a decline in demand, factors it says have been worsened by tariffs implemented under the previous presidential administration.

The workforce reductions will affect the Mack Trucks plant in Macungie, Pennsylvania, along with Volvo Group locations in Dublin, Virginia, and Hagerstown, Maryland. Volvo Group North America confirmed the anticipated job losses in a statement released on Friday. The company employs close to 20,000 individuals throughout North America.

These layoffs occur within a broader context of instability affecting the automotive and manufacturing sectors. Shifting U.S. trade policies and a series of tariffs have contributed to increasing production costs for many businesses. Economists have highlighted the ambiguity surrounding the trade strategy of the prior administration as a contributing factor to decreased business and consumer confidence, raising concerns about a potential economic downturn.

Volvo specifically pointed to a decrease in orders for heavy-duty trucks as a key driver behind the necessity for these layoffs. The company indicated that instability in freight rates, anticipated regulatory shifts, and the increasing financial strain of tariffs have all played a role in this downturn. "We regret having to take this action, but we need to align production with reduced demand for our vehicles," a Volvo spokesperson conveyed in a statement to Reuters.

Volvo's announcement represents another challenge for an industry already grappling with intricate supply chain disruptions and volatile market conditions. Other manufacturers have also issued warnings regarding potential price increases and operational disruptions linked to ongoing global trade disputes.