Samsung cancels planned relocation to Mexico with Trump tariffs in motion

Samsung Electronics canceled plans to relocate a portion of its refrigerator production capacity from Gwangju to Mexico in response to U.S. President Donald Trump’s 25 percent tariff on imports from the country, Gwangju’s mayor said Tuesday.

“I checked with the Gwangju factory several times when I visited there yesterday,” the city’s mayor said Tuesday. “I asked if the plan is still feasible, and the vice president of Samsung Electronics’ Gwangju factory said that it is not.”

The mayor added, “The production volume of refrigerators at Gwangju facilities remains the same as last year.”

The Korean electronics giant had been mulling potential ways to adjust production volume at its overseas facilities in order to respond to U.S. President Trump’s overhauled tariff policy, which plans to impose 25 percent taxes on most imports from Mexico and Canada.

Mexico is a major production hub for Samsung Electronics and many other Korean companies that do business in U.S. including LG Electronics and Hyundai Motor.

Samsung Electronics operates two manufacturing facilities in the country, with one located in Queretaro and the other in Tijuana, with the former in charge of making home appliances and the latter TVs.

Samsung Electronics declined to comment on the matter.

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