President-Elect Expected to Bring Change: Manuf…
By Libby Cantrill, Head of US Public Policy at Pimco
On his first day back in office, President-elect Trump is expected to take bold action, and we are witnessing the effects of these changes already. Some of the world’s leading manufacturers are taking a different approach, as they look to shift their operations to new shores.
Case in point: Samsung Electronics, the South Korean tech giant, is considering moving its dryer production from its Mexican plant to its US facility in South Carolina. This move comes as a direct response to President Trump’s potential 25% tariffs on Canadian and Mexican imports, set to take effect on February 1st.
According to a report from the Korea Economic Daily, Samsung is looking to move its dryer production to its plant in Newberry County, South Carolina. This facility, established in 2017, is currently home to washing machine manufacturing. Samsung’s decision to produce locally has had a significant impact on production, with Production Manager Bobby Stevens noting that the ability to source materials quickly and efficiently has made all the difference.
Another major player, LG Electronics, is also considering shifting its Mexican refrigerator operations to its Tennessee-based washing machine and dryer plant. This move would allow the company to avoid tariffs and improve its supply chain agility, according to an industry source.
As a result of these changes, these manufacturers are not only avoiding tariffs but also gaining the agility to supply products quickly when customers need them. By producing locally, they can reduce the local product supply period by a quarter.
As President-elect Trump takes office, it’s clear that his policies are already having a ripple effect across the globe. As we move forward, it will be interesting to see how these changes shape the future of manufacturing, trade, and global commerce.