Detroit Diesel Expands Workforce in Response to New Tariff on Imports

Detroit Diesel Expands Operations Amid Tariff Changes

Detroit Diesel, a prominent diesel engine and axle manufacturer based in Detroit, is set to expand its operations by adding a third shift and recalling previously laid-off workers. This expansion comes in response to strategic tariff measures introduced by the federal government.

In October, the U.S. government implemented a 25 percent tariff on heavy truck imports following extensive lobbying efforts (source). The tariff aims to curb offshoring activities and encourage investment within the United States' heavy truck industry. This development marks a significant victory for UAW members advocating for increased domestic production and job creation within the sector.

UAW President Shawn Fain emphasized the significance of tariffs as a mechanism to revitalize American manufacturing jobs. “Strategic, targeted tariffs are an important tool in the toolbox to undo the damage of our free trade disaster and bring back good union jobs to the U.S.,” Fain stated. He urged companies like Detroit Diesel and its parent company, Daimler Truck North America, to reinvest in their workforce. “We applaud this first step in the right direction.”

Mark DePaoli, Director of UAW Region 1A, also highlighted the value of Detroit Diesel's workforce. “Detroit Diesel UAW members build a high-quality product that makes this company billions, and it’s only right that this company would invest right here in Michigan and recognize that success,” he remarked. He also congratulated the returning employees and welcomed new hires joining the union as a result of the company's expansion.

In a related development, workers from the Detroit Diesel Axle unit overwhelmingly voted in 2025 to approve a new contract by a 99 percent margin. This agreement introduced profit-sharing and cost-of-living adjustments, achieved after the threat of a strike.