Mercedes-Benz has announced plans to build a new vehicle in the United States, marking a significant shift in response to President Donald Trump’s 25% tariff on imported automobiles. The German automaker confirmed it will begin production of a new “core segment” vehicle at its Tuscaloosa, Alabama plant by 2027.
While the company has not disclosed the exact model, the move is being widely interpreted as a direct response to the Trump administration’s aggressive push to bring foreign manufacturing back to American soil. The Alabama facility, already a major hub for Mercedes’ U.S. operations, currently produces several high-demand models, including the GLE, GLS, EQE, and EQS SUV lines.
The announcement underscores the effectiveness of Trump’s America First economic strategy, which has forced global corporations to reevaluate their reliance on foreign production. Automakers around the world are now recalibrating their plans to avoid the high costs imposed by tariffs on vehicles manufactured abroad and shipped into the U.S.
Industry analysts estimate that Trump’s 2025 tariff package could increase costs for foreign automakers by as much as $108 billion, giving companies a strong financial incentive to expand operations inside the U.S. rather than absorb massive import fees. Mercedes-Benz is just the latest in a string of major manufacturers—including Hyundai, GM, and Toyota—that have responded by ramping up domestic investment.
The White House applauded the decision, calling it a clear sign that the administration’s policies are restoring U.S. industrial strength and bringing high-quality jobs back to American workers.
“This is exactly what President Trump promised and delivered—foreign companies building their products right here in the USA,” one senior administration official said.
The company did acknowledge ongoing global headwinds, including tighter CO2 emissions rules in Europe and increased competition in markets like China. Mercedes also recently withdrew its forward earnings guidance, citing economic uncertainty driven in part by shifting trade policies. Still, the move to expand U.S. production is being framed as a long-term strategic realignment.
As global automakers face growing pressure from nationalist trade policies and rising transportation costs, many are concluding that the future of automotive manufacturing lies not in Beijing or Berlin—but in Alabama, Michigan, and Texas.
The post Mercedes Says It Will Make Another Car In The U.S. After Trump Tariffs appeared first on Real News Now.
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