After the US tariffs… South Korean companies consider moving factories from Canada and Mexico to the United States

Officials at major South Korean companies said Sunday they are considering moving production to the United States to reduce the impact of new US tariffs on imports from Canada and Mexico.

This came the day after US President Donald Trump ordered, on Saturday, to impose a 25% tariff on imports from Canada and Mexico, in addition to 10% on goods coming from China.

South Korean electronics giants, such as LG Electronics and Samsung Electronics, are exploring options to circumvent these tariffs.

South Korea’s Yonhap news agency quoted LG Electronics officials as saying that the company is considering moving the production of some key products, such as televisions, washing machines and refrigerators, to its factory in the US state of Tennessee.

LG Electronics currently manufactures many of its home appliances in Mexico, according to the same agency.

Last month, LG Electronics CFO Kim Chang-tae said the company will reevaluate its production strategy if US trade policies force it to adjust its supply chain.

In the same context, a senior official at Samsung Electronics, which operates several factories in Mexico, said that his company is assessing the risks and opportunities that may arise from the changing business environment.

Battery companies and automakers are also closely watching shifts in trade within North America, officials said.

South Korean carmaker Hyundai Motor Group is currently studying the possibility of moving its factory in Mexico to the United States.

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

The US president also indicated the possibility of imposing new tariffs on other sectors, including energy and semiconductors.