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Donald Trump Taking the Oath of Office as President. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] U.S. President Donald Trump has formalized a 25% tariff on products from Mexico and Canada, raising alarms for South Korean companies like Samsung, Hyundai Motor, LG, and POSCO, which have manufacturing plants in these countries.
The companies initially built production bases in Mexico and Canada to target the U.S. market. However, with tariffs rising from 0% to 25%, the advantages of local production, such as reduced labor and logistics costs, are expected to diminish.
Samsung Electronics and LG Electronics are now considering relocating their appliance production from Mexico to the U.S.
According to industry sources on Tuesday, Samsung is exploring moving the production of dryers currently manufactured at its Querétaro plant in Mexico to its facility in Newberry, South Carolina.
Currently, Samsung operates its Tijuana plant in Mexico to produce TVs and its Querétaro plant to manufacture refrigerators, washing machines, and dryers.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
