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Germany’s Mercedes-Benz Group AG confirmed that it will move the production of its best-selling GLC sport utility vehicle to the US from Germany, reported Bloomberg.

The carmaker announced at the beginning of this month that it would move the production of “a core segment vehicle” to the other side of the Atlantic, but until now, they haven’t named the model.

Mercedes also declined to comment on whether the step is a result of the US President’s tariff policy, adding a levy of 25% to the original 2.5% car imports to the US were already facing.

“If you see what we want to achieve with volumes on this model, it makes sense to bring it to the US,” Mercedes North America chief Jason Hoff said during a press briefing on Monday.

Currently, the German-made GLC is Mercedes’ most popular US import, with a starting price of $49,250 (€44,193). Mercedes sold more than 64,000 of this hybrid model last year in the US, more than 50% more than in the previous year.

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The production of the car will take place in Mercedes’ Tuscaloosa, Alabama, plant. The output of the US-made GLC SUV is planned to start in 2027.

Other carmakers also announced investments in the US, as they aim to reduce costs that the US President’s tariff policy brings about, by making manufacturing local, just as the US President wants.

In the case of Mercedes, there is no information about how many more jobs this step would create or if there is any additional financial investment planned.

Yet, the White House hastily welcomed the decision. They also highlighted that BMW is considering boosting production at its South Carolina plant, Stellantis will re-open its plant in Illinois, Honda plans to shift production of the Civic from Japan to the US, and Hyundai plans a $20 billion investment in the country, among others.