Samsung weighs moving dryer production to US in response to Trump tariffs
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South Korea’s Samsung Electronics and at least one other appliance maker are considering moving some jobs from plants in Mexico to their U.S. factories.
The review comes as President Donald Trump considers imposing 25% tariffs on imports from Canada and Mexico on February 1, a South Korean newspaper reported on Tuesday.
Samsung is currently looking at moving dryer production at its Queretaro plant to a plant in South Carolina, he said. Korea Economic Daily According to the newspaper, the main products of the South Carolina plant are washing machines.
The American Institute in Newberry County, South Carolina was established in 2017; Samsung’s website says. Samsung Electronics Home Appliances America (SEHA) was the first US-based home appliance manufacturing facility.
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People walk past a Samsung Electronics sign outside the company’s Seocho building in Seoul on July 7, 2022. (JUNG YEON-JE/AFP via Getty Images/Getty Images)
“Before, everything was coming from across the ocean, so if we had any part shortages, any delays, any material defects, we’d have to wait forever,” SEHA product manager Bobby Stevens said in a 2023 statement.
“But now that we have local materials, we can get the materials and supplies we need to run everything in a few hours or 10 minutes, which has a big impact on production,” he said.
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A Samsung Electronics Co. washer and dryer is on sale Tuesday, July 30, 2019, at an airport home improvement store in San Jose, California. (David Paul Morris/Bloomberg/Getty Images)
The Newberry facility “has generated approximately $500 million in capital investment in the region” and will directly “support more than 1,500 jobs for local residents as part of its ongoing operations,” Samsung said in a statement.
LG Electronics is considering moving its Mexican refrigerator operations to a washer and dryer factory in Tennessee, the Korea Economic Daily reported.
| Ticker | Security | last one | Change | change % |
|---|---|---|---|---|
| SSNLF | Samsung Electronics Co. | 40.5999 | -17.15 |
-29.70% |
Samsung Electronics Co. and LG Electronics Inc. washing machines are on sale at an airport home appliance store in San Jose, California, Tuesday, July 30, 2019. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
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Samsung, for its part, said it plans to monitor the situation and respond flexibly as it operates production bases in many regions of the world. LG Electronics has stated that it plans to adjust its production system and production locations to respond to changes in the market.
“If we build a factory in the United States, we will not only avoid tariffs, but we will have the ‘capacity’ to provide products immediately when our customers need them,” an unnamed industry source told the media. “If we produce in an American factory, we can cut the domestic delivery time by a quarter.”
Reuters contributed to this report.
