Volvo Group plans to lay off 800 workers at three US plants over the next three months due to market uncertainty and reduced demand, as a result of tariffs imposed by US President Donald Trump.
Volvo Group North America announced in a statement that it has told employees that it plans to lay off between 550 and 800 people, Capital.ba reports.
The company, which is part of Sweden's AB Volvo, employs nearly 20 people in North America, according to its website.
Trump has upended a global trading system that has existed for more than 75 years with a plan to impose tariffs on goods from around the world. His wavering trade policies have undermined consumer and business confidence and led economists to raise their forecasts for a U.S. recession, Reuters reports.
The layoffs at the Volvo Group are the latest response from the car and truck industry, which is going through a tough time due to tariffs, which are expected to increase the cost of producing vehicles.
"Heavy truck orders continue to be negatively impacted by market uncertainty regarding freight rates and demand, potential regulatory changes and the impact of tariffs. We regret having to take this action, but we must align production with the reduced demand for our vehicles," said a Volvo Group North America spokesperson.
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