GM To Increase Truck Production In U.S. As Trump’s Auto Tariff Goes Into Effect

General Motors is planning to ramp up its production of light-duty trucks in the United States after President Donald Trump imposed a 25% tariff on auto imports, Reuters reported on Thursday.

In a message sent to employees, GM said it will increase the truck production at its assembly plant in Fort Wayne, Indiana. The auto company based in Detroit said in a statement that it “will be making operational adjustments at Fort Wayne Assembly, including hiring temporary employees, to support current manufacturing and business needs,” according to The Detroit News.

Plant Director Dennys Pimenta told employees that the change could add more overtime days to the schedule for workers, and a company source told Reuters that hundreds of temporary workers could get hired at the plant, which currently employs around 4,150 workers. GM’s plants in Canada and Mexico that also focus on making light-duty and full-size trucks will not see any changes to production schedules, a source told The Detroit News.

Trump’s tariff on auto imports kicked in on Thursday after he announced it in the Oval Office last week.

“What we’re going to be doing is a 25% tariff on all cars that are not made in the United States. If they are made in the United States, there is absolutely no tariff,” Trump said.

The tariff will likely affect Canada and Mexico the most as U.S. car manufacturers have outsourced production of their vehicles to each of those countries. Canada’s second largest export is vehicles, and around 125,000 Canadians work directly in the automotive industry, the Associated Press reported. On Thursday, Canadian Prime Minister Mark Carney vowed to match the United States’ 25% auto tariff.

“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

Trump recently credited tariffs for bringing manufacturing jobs to the United States after South Korean car manufacturer Hyundai announced a $21 billion investment in the country over the next four years.

“This investment is a clear demonstration that tariffs very strongly work,” Trump said. “And I hope other things also, but the tariffs are bringing them in at levels that have not been witnessed.”