Volvo Cars has announced that it will slash 5% of its workforce at its South Carolina plant on Wednesday in response to shifting trade policies, such as the recent tariffs implemented by the United States.
The Charleston, South Carolina, factory will see around 125 of its 2,500 employees let go. The decision is because Volvo imports most of its vehicles from Europe; its Charleston location only makes its EX90 electric SUV vehicle and Polestar’s Model 3.
Volvo said it plans to create 4,000 more jobs in South Carolina later on and will also seek to increase the factory’s output. The Charleston location can create a maximum of 150,000 vehicles a year.
The Washington Examiner has contacted Volvo for comment.
Volvo is the latest automobile company to react to the tariffs announced by President Donald Trump, which saw a 25% tariff on key auto parts go into effect on Saturday. Another tariff of the same amount for foreign-built vehicles went into effect on April 3.
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Last week, Mercedes stated that it is set to “localize” a “core segment” vehicle line to its plant in Alabama. The move, set to be complete by 2027, would put the automaker “even closer to the U.S. customer.”
Meanwhile, Ford has extended its “From America, For America” campaign, offering employee pricing of its vehicles to all U.S. consumers through July 4, past the original deadline of June 2. Ford CEO Jim Farley has stated that he has seen “double-digit sales increases” over the last two months.