Samsung is considering shifting some dryer production from Mexico to its South Carolina plant to anticipate potential 25% import tariffs proposed by President Trump.
Key Facts:
• Samsung may move dryer manufacturing from Querétaro, Mexico, to its Newberry County, South Carolina facility.
• President Trump is looking at imposing 25% duties on imports from Mexico and Canada starting February 1.
• The South Carolina facility opened in 2017 and primarily produces washing machines.
• LG Electronics is also thinking about transferring refrigerator production from Mexico to its Tennessee plant.
• Both companies say they are closely monitoring changes in U.S. trade policy.
The Rest of The Story:
President Trump’s proposal of a 25% tariff on Mexican and Canadian imports could change the way major appliance makers do business.
According to a South Korean newspaper, Samsung is actively reviewing a plan to move dryer production from its Querétaro plant to its factory in Newberry County, South Carolina.
This U.S. facility was established in 2017 as the company’s first stateside home appliance manufacturing location.
Samsung’s website says it has already brought over 1,500 jobs to the area, along with nearly $500 million in capital investments.
One Samsung production manager said in 2023, “Previously everything was coming in from across the ocean…now, we have local material…so that’s made a big impact on production here.”
The company believes moving more manufacturing to the United States could reduce wait times for parts and help avoid the added costs that might come with new tariffs.
LG Electronics is also considering a similar move by relocating its Mexican refrigerator production to an existing plant in Tennessee.
Both companies say they will remain flexible in their response to any tariff decisions, noting that more U.S.-based production could simplify supply chains and provide faster delivery to customers.
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.”
This view suggests the potential benefits of onshore manufacturing could extend beyond just avoiding tariffs, as faster production and delivery might offer a competitive edge in the appliance market.
Commentary:
Samsung’s decision to shift operations to the United States underscores the effectiveness of President Trump’s approach to tariffs.
By moving dryer production to its South Carolina facility, Samsung could shield itself from extra costs and further invest in American communities.
We expect more companies to follow suit as they look for ways to limit tariff burdens while taking advantage of local supply chains.
This initiative signals that the administration’s trade policies might already be steering manufacturers toward boosting U.S. jobs and strengthening domestic production.
The Bottom Line:
Samsung and LG may soon expand their American manufacturing footprint to preempt tariffs.
This shift could support more U.S. jobs and possibly shorten wait times for customers.
Companies are keen to stay ahead of any trade changes and protect their bottom lines.
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Whether these plans move forward depends on ongoing policy decisions and market conditions.