South Korean companies weigh production shifts due to US tariffs
(MENAFN) Major South Korean companies are actively exploring ways to minimize the impact of new US tariffs on imports from Canada and Mexico. With some companies considering relocating their production to the United States, the move follows an order from President Donald Trump on Saturday, imposing a 25 percent tariff on goods from Canada and Mexico, along with an additional 10 percent tariff on imports from China.
LG Electronics and Samsung Electronics, two South Korean giants with manufacturing operations in the affected countries, are looking for ways to bypass these new tariffs. LG Electronics, which currently manufactures many of its home appliances in Mexico, is considering shifting production of products like TVs, washing machines, and refrigerators to its Tennessee plant, according to Yonhap News.
In a statement, LG's Chief Financial Officer, Kim Chang-tae, had mentioned last month that the company would reassess its production strategy if the new US trade policies forced any significant changes in its supply chain. Samsung Electronics, which also has several production facilities in Mexico, is similarly evaluating the risks and opportunities presented by the shifting trade landscape, according to a senior company official.
The battery and automotive industries are also closely monitoring these developments, as the changing trade dynamics in North America could have far-reaching implications for production strategies in various sectors, company officials noted.
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