South Korean firms weigh up moving factories from Canada, Mexico to US
(MENAFN) Leading South Korean firms are evaluating strategies to reduce the effect of new US tariffs on Canada and Mexico shipments, putting in their mind the idea of shifting production manufacturing to the United States, spokespersons stated on Sunday.
On Saturday, US Leader Donald Trump commanded a 25 percent tariff on imports that come from either Canada or Mexico in addition to extra 10 percent on products from China.
South Korean tech leaders LG Electronics and Samsung Electronics, which operate in the affected nations, are looking into alternatives to avoid the tariffs.
As reported by Yonhap News, a representatives of LG Electronics revealed that the firm is taking into account relocating the output of major products like TVs, washing machines, and refrigerators to its factory in Tennessee.
A significant number of its home appliances are now produced in Mexico.
Kim Chang-tae, LG’s Chief Financial Officer, stated last month that the firm would re-evaluate its production method if US trade rules triggered modifications in its supply chain.
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