Tariffs aren’t just a potential problem for civilian cars. The semi-truck industry could be rocked as well. Mack and Volvo is one of the largest American manufacturers and has decided to cut workers due to rising costs. 

Mack and Volvo layoff hundreds of American workers 

There are Mack and Volvo truck plants are located all over the country. From Pennsylvania, Maryland, Virginia, and North Carolina, many workers can be found building semi-trucks. 

However, due to tariffs large-scale layoffs are on the way. Reportedly around 800 employees could be cut. Mack Trucks is planning to lay off between 250 to 350 workers in Lehigh Valley, Pennsylvania. 

Volvo Trucks North America plans to cut 350 staff members in Dublin, Virginia, and 40 employees in the Hagerstown, Maryland powertrain plant. 

According to TT News, this decision has been made due to being negatively impacted by the uncertainty of freight rates, demands, potential regulatory changes, and tariffs. 

About 45% of all Class 8 trucks built for the United States and Canadian markets will be subject to the 25% tariffs on all imports from Canada and Mexico. Then, about 40% of the United States Class 8 trucks are made in Mexico, and 5% of Canada’s Class 8 trucks are made in the US.

On top of that, heavy-duty trucks aren’t selling like they used to. Orders have been declining. Production needs to be aligned with reduced demand. Carriers aren’t exactly ready to buy new truck fleets due to delays that may slow investments and harm economic growth.

Workers are losing out on good-paying jobs that are essential to local communities.