Volvo Slashes 800 US Jobs as Trump’s Tariffs Cripple Auto Industry

 Volvo Cars announced on April 18, 2025, plans to cut up to 800 jobs at its US manufacturing facility in Ridgeville, South Carolina, citing the severe financial strain caused by President Donald Trump’s escalating tariffs on imported auto parts and vehicles. 

The Swedish automaker, owned by China’s Geely Holding, stated that the 25% tariffs on non-US passenger cars and light trucks, effective since March 2025, have disrupted its supply chain and inflated production costs. Reuters reported that Volvo’s decision reflects broader industry challenges, with the tariffs adding an estimated $5,000 to $10,000 to the cost of each vehicle sold in the US, according to S&P Global Mobility.

The Ridgeville plant, which employs 1,500 workers and produces the S60 sedan and XC90 SUV, relies heavily on imported components from Europe and Asia. Volvo’s statement highlighted that the tariffs, combined with a 10% blanket duty on all US imports, have eroded profit margins, forcing “tough but necessary” workforce reductions. 

The cuts, expected to be finalized by June 2025, will affect both permanent and contract workers, with Volvo offering severance packages and job placement support. The company also warned of potential production slowdowns if tariffs persist, as relocating supply chains to the US could take years and cost billions.

The announcement drew sharp criticism from US labor unions, with the United Auto Workers (UAW) calling it a “direct blow” to American workers, despite Trump’s tariffs being pitched as job protection measures. South Carolina Governor Henry McMaster expressed disappointment, noting the state’s $1.1 billion investment in the plant since 2018.