Mercedes-Benz is set to begin production of new vehicles at its plant near Tuscaloosa, Alabama in 2027, the company said Thursday that it is the latest in a series of investments the automaker has announced following President Trump's aggressive car rates.
The German automaker did not say which vehicles will be added to the Tuscaloosa plant, but they simply say it will become a “core vehicle segment” that will “deepen its commitment to the US.”
Trump's 25% tax on car imports has shaken up the global auto industry, but this week provided a grace period on several elements of the tariff.
analysis release According to the Automotive Research Center in early April, 25% of U.S. automotive manufacturers saw an increase of approximately $100 billion in car prices in 2025.
Hyundai, GM and other automakers have increased US production and announced investments in response to taxation.
Mercedes pulled revenue guidance this week amid uncertainty about tariffs. Automakers face hurdles in all major markets, from Trump's tariffs to competition from China's rapidly moving rivals and the European Union's new CO2 emission targets.
The company's Alabama plant currently produces GLE, GLS, GLE Coupe, Mercedes Maybach GLS, and EQE SUVs, EQS SUVs and Mercedes Maybach EQS SUVs for all global markets.
