Moving Mexican factories to U.S. an 'option' for Samsung, LG if Trump tariffs imposed

Korean firms like Samsung and LG are considering relocating manufacturing from Mexico to the U.S. due to proposed tariffs.

Employees work at Samsung Electronics' Queretaro manufacturing facilities. [SAMSUNG ELECTRONICS]

Korean companies that have manufacturing facilities in Mexico are weighing their relocations to the United States as the Trump administration heralds a 25 percent tariff on goods from Mexico and Canada.

“Relocating our factory in Mexico is one of several options we are mulling at the moment,” said a Samsung Electronics spokesperson on Wednesday. “We cannot confirm it now as the tariff is not a definite term either.”

Samsung Electronics operates two factories in Mexico with one located in Queretaro and the other in Tijuana.

The Queretaro factory handles home appliances such as refrigerators, washing machines and dryers while the one in Tijuana produces TVs.

U.S. President Donald Trump said Monday that his administration is looking to impose 25 percent across-the-board tariffs on goods from Mexico and Canada from as early as Feb. 1.

Samsung Electronics is considering relocating productions from its Queretaro facilities to its Newberry base in South Carolina of the United States, according to local reports.

Samsung's factory in Newberry, South Carolina, built in 2017, is its first U.S.-based home appliance production base dedicated to washing machines.

LG Electronics, another major household brand in the United States, said it is also mulling a relocation of its Mexico facilities to elsewhere to dodge a potential tariff.

“Of the many options, the relocation of our Mexican facilities is one,” said an LG Electronics spokesperson.

LG Electronics also runs two manufacturing facilities in Mexico, with one located in Reynosa committed to TVs and the other one in Monterrey dedicated to home appliances.

If the Korean electronics giant decides to shift its Mexican manufacturing base, it is likely its Tennessee facilities will take over some of the production from Monterrey. LG Electronics' Tennessee facilities are in charge of washing machines and dryers.

Samsung Electro-Mechanics, a components maker, has put on hold its plan to build a camera module factory for automakers in Mexico.

Its CEO, Jang Deok-hyun, had said at CES 2025 that the company was “looking for a third location” for its planned Mexico project.

LG Innotek, on the other hand, said its existing auto parts factory's expansion in San Juan del Rio will go as planned with its target completion time set for this year.

“Parts makers are likely to be less pressured by the potential tariff because they don't directly have to shoulder the cost,” said an industry insider.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]