Mercedes-Benz says it’ll make another car in America

Mercedes-Benz plans to get around imported vehicle tariffs by making a vehicle in the United States. 

The German automaker announced last week it will move production of a “core segment” vehicle to the United States. It comes about one month after President Donald Trump slapped a 25% tariff on imported vehicles, Bloomberg reports. 

Mercedes hasn’t yet said which vehicle it plans to make in America. However, it wants to manufacture the car at a factory in Tuscaloosa, Alabama, and shift its assembly to the state by 2027. 

“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 said in a statement. 

The White House welcomed the news and praised Trump for his protectionist measures. 

“Today, Mercedes-Benz announced it will move production of another vehicle to the U.S. — the latest result of President Donald J. Trump’s relentless pursuit of American manufacturing dominance,” a White House press release said. 

Mercedes said in a statement its Alabama plant is now “the global export hub for Mercedes-Benz SUVs.”  

The luxury car company’s GLC sport utility vehicle (SUV) is gaining popularity in the United States, seeing a 58% increase in sales last year. 

Additionally, Mercedes has reportedly considered pulling its least-expensive cars from the American market because of tariffs. However, it has not announced any decisions on that front yet. 

Before Mercedes announced the move, Trump cut a deal with the auto industry in exchange for bringing more automobile manufacturing to the country, the Daily Wire reports. The new rules say auto manufacturers will keep paying a 25% tariff on imported cars, but they won’t face additional tariffs, such as those on steel and aluminum; this allows them to use imported raw materials to make cars in the United States for less money 

Other foreign car corporations also plan to increase their investments in the United States. 

South Korean car company Hyundai recently announced a $21 billion investment in the U.S. over the next four years, beginning with a steel plant in Louisiana that’s expected to create about 1,500 jobs. 

“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” the company announced in late March. 

“The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.” 

BMW is also reportedly considering increasing its output at a South Carolina plant, but hasn’t made any formal announcement yet.