
German automotive giant Mercedes-Benz will shift the production of one of its vehicles to Tuscaloosa, Alabama, by 2027 in response to the 25 percent tariffs implemented by US President Donald Trump.
RESPONSE TO TRUMP TAXES
Mercedes-Benz’s move to manufacture in the U.S. is a significant response to President Trump’s policies aimed at boosting domestic production with higher tariffs on foreign cars. While the move is seen as a political victory for U.S. manufacturing, the decision is marked by complex trade balances.
IT WAS NOT ANNOUNCED WHICH MODEL WAS CARRIED
The company did not provide details on which model would be built in Alabama, only that a “core segment” vehicle would be moved to the U.S. Experts predict that model could be the GLC, the company’s best-selling compact SUV in the U.S.
Mercedes-Benz’s Tuscaloosa plant already produces high-profit SUVs such as the GLE, GLS, GLE Coupe and Mercedes-Maybach GLS. The company also uses the facility for exports to Europe and Canada, but rising trade tensions could jeopardize those exports.
THE COST OF TAXES IS HEAVY
The impact of Trump’s protectionist policies on the automotive sector is becoming more visible every day. GM CEO Mary Barra announced that the tariffs will impose an additional burden of $4 to $5 billion annually on her company. While Ford launched major discount campaigns on its vehicles, CEO Jim Farley said price increases are on the way.
Honda and Hyundai said they were considering increasing production in the U.S. to avoid tariffs. Subaru said it would stop shipping vehicles to Canada from its Indiana plant, and Stellantis laid off 900 workers.
Company executives say the Trump administration’s unclear policies have made decision-making processes difficult. Officials have expressed their dissatisfaction with the volatility of trade policies, stating that even setting product prices has become complicated.
Mercedes-Benz has not yet responded to a request for comment on the matter, but industry sources point out that any shifts in production plans could directly impact exports and company strategies.
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