Pimco head of public policy Libby Cantrill shares what she expects President-elect Trump to accomplish on his first day back in office on ‘Barron’s Roundtable.’
South Korea’s Samsung Electronics and at least one other electronics maker are considering moving some operations from their plants in Mexico to their US factories.
This review is in response to President Donald Trump’s decision to impose 25% tariffs on goods from Canada and Mexico on February 1, a South Korean newspaper reported on Tuesday.
Samsung is looking to move dryer production currently taking place at its Querétaro plant to a plant in South Carolina, according to the Korea Economic Daily. The newspaper reports that the main product of the South Carolina plant is washing machines.
The US center in Newberry County, South Carolina, was established in 2017, Samsung’s website said. It was Samsung Electronics Home Appliances America’s (SEHA) first US-based home appliance manufacturing facility.
COSTCO TEAMSTERS VOTE TO AUTHORIZE STRIKE
People walk past the Samsung Electronics logo outside the Seocho company building in Seoul on July 7, 2022. (JUNG YEON-JE/AFP via Getty Images / Getty Images)
“Previously everything was coming from across the ocean, so if we had a part shortage, any delay, any material defect, we would have to wait forever,” SEHA Production Manager Bobby Stevens said in a 2023 statement.
“But now, we have local supplies, so in just a few hours or 10 minutes, we can get the parts and materials we need to keep everything going, so that’s had a big impact on production here,” he said.
TRUMP TALKS TO APPLE CEO TIM COOK, LAUGHES ABOUT INVESTMENT
Samsung Electronics Co. washing machine. is displayed for sale at an Airport Home Appliance store in San Jose, California, on Tuesday, July 30, 2019. (David Paul Morris/Bloomberg/Getty Images)
The Newberry facility has generated “nearly $500 million in investments in the region” and directly supports “more than 1,500 jobs for local residents as part of their ongoing operations,” Samsung said in a statement.
LG Electronics is considering moving Mexico’s refrigerator operations to its washer and dryer plant in Tennessee, the Korea Economic Daily reported.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| SSNLF | SAMSUNG ELECTRONICS CO. LTD. | 40.5999 | -17.15 |
-29.70% |
Washing machines from Samsung Electronics Co. and LG Electronics Inc. listed for sale at the Airport Home Appliance store in San Jose, California, on Tuesday, July 30, 2019. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
Samsung said it plans to monitor the situation and respond flexibly, as it operates manufacturing bases in multiple regions of the world. LG Electronics said it plans to respond to changes in the market by adjusting its production schedule and production facilities.
“If we build a factory in the United States, we will not only be able to avoid tariffs, but also have the ‘power’ to provide products quickly when customers want them,” an anonymous industry source told the media. “If we produce in a US factory, we can reduce the delivery time of the local product by a quarter.”
Reuters contributed to this report.