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Samsung, LG consider 'big shift' in home appliance production
Release Time:2025-1-23 16:51:19

On January 20, US Eastern time, Trump officially took office as the new US President, and quickly signed a series of trade policy documents, ordering China, Canada and Mexico and other countries and regions to launch trade practices and monetary policy investigations. The new tariff policy has caused widespread concern in the global market, especially the impact on multinational manufacturing companies.

According to industry sources, Samsung Electronics and LG Electronics are considering moving some home appliance production from Mexico to the United States. The decision was largely influenced by the protectionist policies pursued by Trump, especially his proposed plan to impose steep tariffs on Mexican imports.

During his campaign, Trump repeatedly threatened to impose tariffs on Mexican goods to address illegal immigration and said he would impose tariffs of up to 100 percent on all Mexican imports if Mexico did not take action. Although it is not clear whether the tariff will be implemented immediately, Samsung and LG have begun to evaluate the adjustment of their production layout.

Samsung is considering moving some dryer production from its Queretaro, Mexico, plant to its U.S. appliance plant in Newbury, South Carolina. Samsung currently makes refrigerators, washers and dryers in Queretaro and televisions in the Mexican city of Tijuana.

LG is also considering moving refrigerator production from Mexico to a plant in Tennessee, which currently focuses on making washers and dryers.

This is not the first time that Trump's protectionist trade policies have triggered a shift in the production layout of multinational companies.

Similar tariff threats have previously caused some manufacturing to move from China to Southeast Asia and Mexico. Now, Trump is again threatening to impose tariffs on Mexico, indicating that his hardline stance on trade policy has not changed.

However, it remains to be seen whether this tariff policy will actually be implemented. Although the Trump administration's trade protectionist policies have had a direct impact on the production layout of Samsung and LG, the business community generally believes that multinational enterprises will consider many factors such as cost, market and policy in their global layout.

Therefore, even if tariffs are implemented, companies are likely to ease cost pressures in other ways than relying entirely on production shifts.

The adjustment of the production layout of Samsung and LG reflects the uncertainty of the global manufacturing industry under the trade protectionist policy. As global supply chains become increasingly complex, multinational companies need to find a balance between policy risk and cost-effectiveness. In the future, the direction of the Trump administration's trade policy is still full of uncertainty, and the international community will closely watch its next moves and the impact of these policy changes on the global manufacturing layout.

This time Samsung and LG consider adjusting the production layout, not only is a direct reaction to Trump's tariff policy, but also highlights the vulnerability of the global manufacturing industry under the wave of trade protectionism.

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