[News] Samsung Reportedly Halts Mexico Investments, Plans 30% Job Cuts Under Trump Tariff Pressure

According to a report from ijiwei, citing ​WAVY-TV, Samsung has decided to halt any future investments in Mexico due to uncertainties surrounding Trump’s proposed tariffs, as noted by Roberto Vega Solís, president of Mexico’s Business Confederation in Tijuana.

Moreover, the company has announced plans to cut its regional workforce by up to 30 percent, as the report notes.

Citing Vega Solís, the report indicates that Samsung is among the longest-established foreign corporations in Mexico, with its manufacturing plant in Tijuana dedicated to producing television sets.

As the report highlights, earlier this month, President Trump imposed a 25 percent tariff on aluminum and steel imports—key materials used in Samsung’s refrigerator manufacturing. According to Vega Solís, these tariffs will make production more challenging, as cited in the report.

The report also notes that the White House is still considering tariffs on other goods manufactured or grown in Mexico, with the potential implementation date set for April 2.

Samsung currently runs two manufacturing facilities in Mexico—one in Tijuana and another in Querétaro—where it had been investing millions of dollars to produce household appliances, including refrigerators, according to the report.

Additionally, Vega Solís notes, as cited in the report, that Mexico’s increasing debt and judicial reforms pose concerns for a company like Samsung, contributing to its decision to temporarily suspend investments.

Meanwhile, there have been previous rumors suggesting that LG Electronics was considering shifting part of its home appliance production from Mexico to the U.S., as reported by Reuters. However, according to FreightWaves, citing Mexican media outlet El Economista, LG Electronics is instead expanding its television manufacturing operations in Reynosa, Mexico, near the U.S. border at Pharr, Texas. The company is investing USD 100 million to double the plant’s capacity, enabling the production of 6.5 million LG OLED televisions for the North American market.

Read more

• [News] Samsung and LG Consider Moving Home Appliance Production from Mexico to U.S. Amid Potential Tariff Hikes
• [News] Taiwan’s Exports to Mexico Soar 480% in January, Fueled by GPU Demand Ahead of Trump’s Tariff War

(Photo credit: Samsung)