S. Korean companies consider relocating plants from Canada, Mexico to US

ISTANBUL

Major South Korean companies are assessing ways to minimize the impact of new US tariffs on imports from Canada and Mexico, with some considering relocating production to the United States, officials said Sunday.

US President Donald Trump on Saturday ordered a 25% tariff on imports from Canada and Mexico, along with an additional 10% tariff on goods from China.

South Korean electronics giants LG Electronics and Samsung Electronics, which have manufacturing operations in the affected countries, are exploring options to bypass the tariffs.

LG Electronics is considering shifting production of key products such as TVs, washing machines, and refrigerators to its plant in Tennessee, company officials said, according to Yonhap News.

Many of its home appliances are currently made in Mexico.

LG’s Chief Financial Officer Kim Chang-tae said last month that the company would reassess its production strategy if US trade policies forced changes in its supply chain.

Samsung Electronics, which operates several production facilities in Mexico, is also evaluating the risks and opportunities posed by the shifting trade environment, a senior company official said.

The battery and automotive industries are also closely monitoring the changing trade dynamics in North America, officials noted.

South Korean automaker Hyundai Motor Group is reportedly considering moving its manufacturing plant in Mexico to the US, according to Yonhap News.

Trump’s decision to impose higher tariffs on imports from Canada, Mexico, and China has drawn strong criticism and warnings of countermeasures from the three countries.

The US president also signaled additional tariffs on other sectors, including energy and semiconductors.