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The Wall Street Publication > Blog > Lifestyle > As Trump eases auto tariffs, Mercedes will increase at Alabama plant
Lifestyle

As Trump eases auto tariffs, Mercedes will increase at Alabama plant

Editorial Board Published May 1, 2025
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As Trump eases auto tariffs, Mercedes will increase at Alabama plant
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Ford CEO Jim Farley on his firm’s dedication to American manufacturing, response to President Donald Trump’s auto tariff reduction and Ford’s Louisville, Kentucky, plant setting an instance of Trump’s imaginative and prescient for the U.S. auto business.

Mercedes-Benz’s manufacturing plant in Tuscaloosa, Alabama, will construct a brand new car for the posh automaker. 

The brand new car will add to the quite a few fashions that the Tuscaloosa plant already produces, equivalent to the Mercedes-Benz, GLE, GLS, GLE Coupe, EQS SUV, and EQE SUV and the Mercedes-Maybach GLS and EQS SUV. 

The Mercedes-Benz automotive emblem, lined with raindrops.  (Beata Zawrzel/NurPhoto by way of Getty Photographs / Getty Photographs)

“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” Mercedes-Benz North America CEO Jason Hoff mentioned in an announcement.

MERCEDES-BENZ CEO SIGNALS POTENTIAL FOR MORE US INVESTMENT

Mercedes-Benz touted the transfer as “deepening its U.S. footprint and underscoring Alabama’s role as an important part of the company’s global production network,” in addition to aligning with its “local-for-local” method.

The plant has operated simply outdoors the west-central Alabama metropolis for the reason that Nineties. In that point, it has manufactured over 4.5 million Mercedes automobiles.

Of the automobiles it builds there annually, roughly 60% are exported to different international locations, Mercedes-Benz mentioned.

Mercedes-Benz logo

The Mercedes-Benz brand is seen on the forty third Bangkok Worldwide Motor Present in Bangkok on March 22, 2022. (Reuters/Athit Perawongmetha/File Picture / Reuters Photographs)

In latest weeks, Mercedes-Benz and different automakers have been dealing with tariffs levied in opposition to their respective international locations by the Trump administration.

TRUMP TO REDUCE IMPACT OF AUTO TARIFFS AS INDUSTRY MAKES EFFORT TO RETURN MANUFACTURING TO US: ‘MAJOR VICTORY’

President Donald Trump’s tariff on imported passenger automobiles and lightweight vehicles got here into power in early April. It amounted to 25%. One other levy of the identical measurement focusing on sure key imported auto elements is slated to go stay Could 3.

On Wednesday, the president issued a proclamation giving some tariff respite to automakers.

President Donald Trump

President Donald Trump talks to reporters throughout a gathering with Norway’s Prime Minister Jonas Gahr Retailer within the Oval Workplace on the White Home in Washington, D.C., on April 24. (Chip Somodevilla/Getty Photographs / Getty Photographs)

It entailed an “offset to a portion of tariffs for automobile parts used in U.S.-assembled vehicles equal to 3.75% of the Manufacturer’s Suggested Retail Price (MSRP) of a manufacturer’s U.S. production for the next year (April 3, 2025, to April 30, 2026), and 2.5% of U.S. production the year after (May 1, 2026, to April 30, 2027),” in accordance with a reality sheet.

GM CEO BREAKS SILENCE OVER TARIFF PRESSURE AND WHAT IT MEANS FOR YOUR WALLET

The White Home mentioned the transfer “modifies the tariff action on automobiles and automobile parts by encouraging manufacturers to assemble their automobiles in the U.S., thereby reducing American reliance on foreign imports of automobiles and automobile parts.”

TAGGED:AlabamaautoeasesexpandMercedesplanttariffsTrump
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