Mack Trucks Announces Layoffs Amid Tariff and Trade War Concerns

Subscribe to our free newsletter today to keep up to date with the latest transportation and logistics news.

Mack Trucks has announced a workforce reduction affecting its manufacturing operations in Pennsylvania and Maryland. The company confirmed it will lay off between 250 and 350 employees at its Macungie plant in the Lehigh Valley, with additional cuts of 50 to 100 workers planned at its Hagerstown, Maryland, facility by early May. These changes follow an earlier round of 43 job losses at the Maryland site this year.

The layoffs will roll out over the next three months and will include both hourly and salaried positions. The Macungie plant, which assembles heavy-duty trucks, currently employs around 2,700 workers.

Tariffs and trade uncertainty among drivers of workforce cuts

Mack Trucks attributed the layoffs to declining freight demand and increased market volatility. The company cited rising raw material costs, policy uncertainty, and ongoing trade tensions as key contributors to its decision.

The truck manufacturing industry is undergoing a downturn following a period of high order volumes. Fleet operators have scaled back investment amid inflationary pressures and unclear regulatory trajectories. Mack Trucks specifically pointed to tariffs and trade policy uncertainty as influencing costs and diminishing demand.

The United Auto Workers Local 677, representing the majority of the Macungie workforce, responded with concern about the scale and timing of the cuts. Union officials noted that many affected employees are still in training and questioned whether all alternative options had been considered.

Pennsylvania Governor Josh Shapiro and State Representative Josh Siegel issued statements opposing trade policies they believe are harming local manufacturers. Both emphasized their support for affected workers and called for a reevaluation of national economic strategies that disrupt regional employment.

Siegel urged policymakers to consider the unintended consequences of tariffs and said the layoffs reflect a broader challenge for domestic manufacturers trying to remain competitive under current conditions.

Analysts expect continued volatility across the freight and logistics sectors through the rest of the year. Inflation, global supply chain shifts, and labor shortages are pressuring truck manufacturers to reassess production and staffing levels.

Sources:

• Trucking Info
• FreightWaves