Mercedes Expands Alabama Output Amid U.S. Tariffs

Mercedes-Benz has announced plans to begin production of a new 'core segment' vehicle at its Tuscaloosa, Alabama plant by 2027, in direct response to the 25% tariffs on imported vehicles imposed by the Trump administration. The specific model has not been disclosed, but company executives underlined that the move reinforces Mercedes' longstanding commitment to the U.S. market. The Tuscaloosa facility, a major global hub for Mercedes SUVs, has produced over 4.5 million vehicles since 1997, exporting around 60% of its output. The announcement is part of a broader trend, with automakers like BMW, Hyundai, Toyota, and GM increasing U.S. investments or shifting production to address tariff pressures. Mercedes-Benz also recently suspended its 2025 financial guidance, citing tariff-related uncertainty and competitive pressures. The White House praised the company's decision as a sign of strengthening American manufacturing tied to its tariff policies.