Mercedes is set to “localize” a “core segment” vehicle line to its plant in Tuscaloosa, Alabama, by 2027, the automaker announced Thursday. The German company said it wanted to strengthen “our ties to the North American market” as President Donald Trump’s sweeping tariffs prompt some companies to relocate to the United States.

Mercedes-Benz’s manufacturing plant in Tuscaloosa, Alabama, will build a new vehicle for the luxury automaker, according to a Thursday announcement.

Mercedes-Benz on Thursday said it will add a new vehicle to its plant in Alabama amid President Donald Trump's auto tariff.

US President Donald Trump, by executive order on April 9, is closing the door on tariff exemptions on small packages from China and Hong Kong. The policy, which took effect on May 2, has ended the so-called “de minimis” privilege for direct-to-consumer goods arriving from the two Asian markets.

Small-value packages shipped to the US from China will no longer be exempted from tariffs starting Friday, when President Donald Trump’s move against an exception he called a “big scam” takes effect.

Supporters say the change is important to stop cheap Chinese goods from entering the U.S. But the decision could drive up prices for goods Americans buy online.