Samsung, LG Could Move Factories From Mexico To The US
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Donald Trump, the President of the United States, presented a series of promises during his election campaign. The list included strengthening the local economy by having big tech companies move part of their production to the country. The implementation of tariffs is one of the measures that seeks to promote the achievement of this goal. In line with this, Samsung could move factories from Mexico to the US, according to Trump.
Not only Samsung, but even LG is reportedly considering moving production plants in North America to the United States. This possibility arises from the “50 Wins for the American People in President Trump’s First 50 Days” report shared by the White House. As its name suggests, the document lists some of the main achievements of the new Washington administration during its first 50 days.
Trump’s cabinet says Samsung and LG could move factories from Mexico to the United States
It’s noteworthy that the list does not mention which products the plants that Samsung and LG could move to the United States manufacture. However, another independent report supports the White House’s claim and adds some additional information. According to the South Korean media outlet Yonhap, the factories primarily produce refrigerators and washing machines. These plants currently operate in Mexico.
The potential relocation of LG and Samsung’s North American appliance factories to the United States is believed to be a measure seeking to evade the tariffs imposed by the local government on imported goods. Donald Trump’s tariffs primarily targeted countries that impose taxes on goods and services exported by the United States. The list of countries includes China, primarily India, and South Korea, among others.
This may be just the beginning of new investments in the United States by global big tech companies. Setting up local factories will help them evade tariffs and, in turn, maintain favorable relations with the White House. Samsung has already established advanced semiconductor factories in the United States. The next step could be to produce some of its key appliance lineups in the country.
More tech companies could take similar measures
In February, Trump stated that Apple will also move factories from Mexico to the United States. On the other hand, some companies planning to invest billions in the US, such as TSMC, could still face tariffs. TSMC’s case is special because it would be the result of potential tariffs on the use of Taiwanese chips. The move—which is not yet official—would be retaliation for Trump’s claims a few weeks ago about the theft of chip technology.
