Mack Trucks And Volvo Latest With Job Cuts Amid Trump’s Levies

Topline

Volvo Group and its subsidiary Mack Trucks confirmed recent layoffs at some East Coast facilities, impacting hundreds of employees, as the companies are the latest to cut workers while citing the possible market impact of President Donald Trump’s tariffs.

Some companies have announced layoffs while citing the market impact from President Donald Trump’s … More far-reaching tariffs.

Timeline

April 17Mack Trucks spokesperson Kimberly Pupillo told Forbes the company would cut up to 350 people at its Lehigh Valley Operations Center in Lower Macungie Township, Pennsylvania, citing “market uncertainty” surrounding heavy-duty truck orders, as well as “possible regulatory changes” and the “impact of tariffs.”

April 17Janie Coley, a spokesperson for Volvo Group, told Forbes the company would cut up to a combined 450 employees at facilities in Dublin, Virginia, and Hagerstown, Maryland, while also citing “market uncertainty,” the likelihood of “possible regulatory changes” and the “impact of tariffs.”

April 3About 900 employees at Stellantis plants in Michigan and Indiana will be laid off after the company paused production at some of its Canadian and Mexican assembly plants, according to a company memo obtained by CNN.

Feb. 4The New York-based cosmetics firm Estée Lauder announced it would cut up to 7,000 employees globally, as the company signaled possible challenges with the “risk of recession, currency volatility, inflationary pressures” and the “imposition of tariffs and sanctions,” among other risks.

Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.

What Other Companies Have Announced Layoffs?

Steelmaker Cleveland-Cliffs laid off more than 1,200 workers in Michigan and Minnesota in March, and the company told the Detroit Free Press the cuts were because of the “current reality of weak automotive production in the U.S.” Cleveland-Cliffs CEO Lourenco Goncalves applauded Trump’s 25% tariffs on steel imports during the company’s latest earnings call in February, suggesting the levies were “critical” and “necessary” as they penalize the company’s foreign competitors. The company reportedly plans to resume production at a facility in Dearborn, Michigan, once Trump’s policies “take full effect and automotive production is reshored.”
General Motors announced earlier this month it would temporarily lay off 200 workers at a plant in Detroit, as the automaker adjusts production “to align with market dynamics,” Reuters reported.
Rep. Ro Khanna, D-Calif., claimed earlier this month that more than 4,100 factory workers had been laid off across the U.S. as Trump’s tariffs roiled markets, though it’s unclear whether any of the layoffs were a direct result of Trump’s levies.

Have Trump’s Tariffs Impacted Workers Beyond The U.s.?

Stellantis temporarily cut about 4,500 workers in Canada after the automaker paused production at its assembly plant in Ontario, according to a memo obtained by CNBC. Antonio Filosa, COO of Stellantis’ North American operations, reportedly said the cuts would come as the company assesses the “medium- and long-term effects of [Trump’s] tariffs on our operations.”
Pantyhose-maker Sheertex told the Canadian Broadcasting Corporation the company would temporarily lay off about 140 workers in Canada, as CEO Katherine Homuth cited Trump’s 25% tariffs and the removal of the de minimis trade exemption.

How Many Workers Could Be Fired Because Of Trump’s Tariffs?

Some analysts have estimated about 177,000 jobs in the U.S. would be cut after Trump announced a 25% tariff on all Canadian imports in February. Goldman Sachs wrote a note on April 15 suggesting Trump’s tariffs would create about 100,000 manufacturing jobs, while also removing up to 500,000 jobs across all industries.

News Peg

The International Monetary Fund said Tuesday the global economy would likely decrease at an annual rate of 2.8%, including a 1.8% decline for the U.S. economy. The UN agency warned an increase in tariffs and growing market uncertainty will likely result in a “significant slowdown” across most industries.

Key Background

Sweeping tariffs across U.S. trade partners were announced by Trump during his so-called “Liberation Day” earlier this month. Trump claimed the levies were roughly half of the total charges imposed on the U.S, arguing his approach was “kind” as economists and analysts criticized Trump’s tariff formula. Global political scientist Ian Bremmer pointed out Trump’s figures were based on a simpler calculation than what U.S. trade officials claimed, writing Trump’s formula was “incredibly stupid.” Trump announced a 90-day pause on his tariffs on April 9, though a baseline 10% would remain, except for China, whose imports face 145% tariffs. The pause was done because over 75 countries reached out to the U.S. to negotiate and did not retaliate to his tariffs, Trump said. Vice President JD Vance said the Trump administration is trying to “rebalance global trade” with tariff negotiations, suggesting it “want[s] to partner with people and countries” to create “a system of global trade that is balanced, one that is open, and one that is stable and fair.”