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South Korea's Samsung Electronics and at least one other appliance maker are considering moving some operations from their plants in Mexico to their U.S. factories.
The review is in response to President Donald Trump's consideration of imposing 25% duties on imports from Canada and Mexico on Feb. 1, a South Korean newspaper reported on Tuesday.
Samsung is looking at moving dryer production currently happening at its Querétaro plant to a plant in South Carolina, according to the Korea Economic Daily. The paper reports that the South Carolina plant's main product is washing machines.
The U.S. facility in Newberry County, South Carolina, was established in 2017, Samsung's website states. It was Samsung Electronics Home Appliances America's (SEHA) first U.S.-based home appliance manufacturing facility.
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People walk past the logo of Samsung Electronics outside the company's Seocho building in Seoul on July 7, 2022. (JUNG YEON-JE/AFP via Getty Images / Getty Images)
"Previously everything was coming in from across the ocean, so if we had any part shortages, any delays, any material defects, we would have to wait forever," SEHA Production Manager Bobby Stevens said in a 2023 statement.
"But now, we have local material, so in just a few hours or even 10 minutes, we can get parts and the materials we need to keep everything going, so that’s made a big impact on production here," he said.
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A Samsung Electronics Co. washing machine and dryer are displayed for sale at the 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 capital investment for the region" and directly supports "over 1,500 jobs for local residents as part of its ongoing operations," Samsung said in the statement.
LG Electronics is considering moving Mexican refrigerator operations to its washing machine and dryer plant in Tennessee, Korea Economic Daily reports.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SSNLF | SAMSUNG ELECTRONICS CO. LTD. | 40.5999 | -17.15 | -29.70% |
Samsung Electronics Co. and LG Electronics Inc. washing machines stand on display 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)
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Samsung said it plans to monitor the situation and respond flexibly, as it operates production bases in many regions of the world. LG Electronics said it plans to respond to changes in the market by adjusting the production system and production sites.
"If we build a plant in the United States, we will not only be able to avoid tariffs, but also have the ‘agility’ to supply products immediately when customers want them," an unnamed industry source told the media outlet. "If we produce in a U.S. plant, we can reduce the local product supply period by a quarter."
Reuters contributed to this report.