The White House announced on Thursday that Mercedes-Benz will start production of a new vehicle at its Alabama plant in 2027.
“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,” the White House said in a statement. “The automaker will produce the vehicle at its Tuscaloosa, Alabama, plant following signals earlier this year that the company will make additional investments in its U.S.-based operations.”
The German luxury automaker confirmed that this will be its first all-electric SUV to be built in the United States.
The automaker also touted its factory in Alabama, saying it has established itself as “the global export hub for Mercedes-Benz SUVs. Roughly 60 percent of SUVs assembled at the plant are exported, the company said.
Mercedes-Benz’s announcement did not say whether the latest developments were a direct result of Trump’s tariffs.
However, the automaker suspended its 2025 financial forecasts on April 30, citing the “uncertainty” caused by the auto tariffs on foreign-built cars and parts. The company experienced a 41 percent drop in first-quarter earnings. The “current volatility with regard to tariff policies” made it difficult for Mercedes-Benz to assess future business development.
NTD, sister media of The Epoch Times, reached out to the automaker for a statement and did not receive an immediate response.
On Tuesday, Trump signed an executive order that relaxed some of the tariffs imposed earlier this month.
The order amended his previous 25 percent auto tariffs, making it easier for vehicles assembled in the United States with foreign parts not to face high import taxes.
Trump’s revised order provides a rebate of 3.75 percent relative to the sales prices of domestically assembled vehicles for one year. The Trump administration said it calculated the rates by applying a 25 percent duty to 15 percent of the value of domestically assembled vehicles in the first year and a 25 percent duty to 10 percent of that value for the second year.
“We just wanted to help them during this little transition, short term,” Trump told reporters. “We didn’t want to penalize them. ”
Meanwhile, Alabama Gov. Kay Ivey praised Mercedes-Benz’s additional investment in her state. The automaker has invested more than seven billion dollars in Alabama since the 1990s.
Mercedes-Benz isn’t the only automaker onshoring production of its vehicles, the White House noted.
Hyundai announced a $20 billion investment, including $5.8 billion for a new Louisiana steel plant to support its U.S.-based vehicle production.
BMW has considered boosting production at its South Carolina plant, and Honda plans to shift production of its Civic vehicle from Japan to the United States.
Additionally, the White House said that Kia plans to produce hybrid vehicles in Georgia, where the factory of its affiliate, Hyundai, is located, and Nissan is also considering shifting production from Mexico to the United States.
Stellantis announced it would reopen its Belvidere, Illinois, plant to build a new midsize pickup truck, and Toyota revealed it would boost hybrid vehicle production at its West Virginia plant.
