Samsung and LG May Move Part of Their Home Appliance Production from Mexico to the U.S. Due to Tariffs

The potential shift in manufacturing comes in light of President Trump’s statement on February 1st, where he mentioned considering imposing a 25% tariff on imports from Canada and Mexico. As a result, both Samsung and LG are evaluating the possibility of moving part of their production from Mexico to the U.S.

Samsung’s Potential Relocation

Sources reported that Samsung is reviewing plans to relocate part of its dryer production from its Querétaro factory to its U.S. appliance plant in Newberry, South Carolina. Currently, Samsung manufactures refrigerators, washers, and dryers in Querétaro for sale in both Latin America and the U.S., while also producing televisions in Tijuana. This shift could impact the company’s operations in Mexico as it adjusts to possible new trade tariffs.

LG’s Potential Relocation

LG Electronics is also considering a similar move. The company is contemplating relocating its refrigerator production from Mexico to its Tennessee plant, which currently produces washers and dryers.

Company Statements

Samsung stated that it will closely monitor the situation and remain flexible, as it operates production facilities in many regions globally. Similarly, LG confirmed its plans to adjust its production systems and locations in response to any market changes stemming from tariffs.

Broader Implications

This potential move is part of a larger trend in which companies are reconsidering their supply chain strategies due to changing trade policies. The introduction of tariffs on Mexican imports may lead manufacturers like Samsung and LG to reevaluate their production bases to avoid increased costs, ultimately impacting both global supply chains and consumer prices in North America.

“The potential relocation of production by Samsung and LG highlights the broader impact of trade policies on global manufacturing and supply chains.” – Industry Expert

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