Mercedes-Benz to expand US production in Alabama amid tariff landscape

The Mercedes-Benz factory in Tuscaloosa Alabama will launch the manufacturing of a new model in 2027 according to recent company plans. The recent decision to start plant production at the Tuscaloosa facility came after multiple car manufacturers relocated their centers to counter the strong automotive tariffs ruled by President Donald Trump.

The German car manufacturer did not specify which exact model would produce cars at the Alabama facility but declared the new vehicle would target a fundamental automobile market segment while strengthening its American market presence.

The global car industry has experienced substantial effects from the 25% automotive import tariffs that Donald Trump introduced. Studies confirmed that strict automotive tariffs introduced by President Donald Trump would drive up U.S. automaker costs by USD 108 billion during 2025. The imposition of levies has resulted in Hyundai and GM to boost their domestic U.S. manufacturing and to establish new investments inside the country.

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Mercedes-Benz decided to withdraw its earnings projection due to the unpredictable effects that trade tariffs have brought to the marketplace. The company experiences various market challenges throughout its major markets since it must contend with U.S. tariffs and intensifying Chinese competition as well the new European emission regulations.

The Tuscaloosa facility operates as a worldwide manufacturing base for the GLE, GLS and GLE Coupe along with Mercedes-Maybach GLS models whereas the all-electric offerings include Mercedes-EQS and Mercedes-Maybach EQS SUV. A new core vehicle segment production model at the plant boosts its significance in Mercedes-Benz's global manufacturing system while demonstrating rising automotive industries' commitment to local American manufacturing because of trade barriers.