 |
Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Donald Trump's tariffs on Mexican and Canadian imports are forcing changes in domestic home appliance companies' North American strategies.
Last Saturday (local time), President Trump signed an executive order imposing a 25% tariff on imports from Mexico and Canada, creating a sense of inevitability in the domestic appliance industry. This move threatens the tariff-free benefits granted under the United States-Mexico-Canada Agreement (USMCA).
Mexico, with its lower labor and construction costs, has long served as a production base for exporting home appliances to the U.S. LG Electronics operates TV and refrigerator factories in Reynosa and Monterrey, while Samsung Electronics manufactures TVs in Tijuana and refrigerators, washing machines, and dryers in Querétaro.
According to market research firm Traqline, as of Q3 last year, LG held a 21.1% share of the U.S. home appliance market, followed by Samsung at 20.9%, making them the top two players. They are trailed by local brands such as General Electric (GE) and Whirlpool. If high tariffs erode the price competitiveness of Korean companies, local brands could quickly gain ground.
For now, these companies plan to offset export losses by diversifying their supply chains, utilizing production bases in Korea, Southeast Asia, and other regions.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
