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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] If you travel 87 km northwest of Nashville, Tennessee, you'll find the small city of Clarksville, home to LG Electronics' appliance factory.
This factory boasts a 66% automation rate, surpassing LG’s Changwon plant in Korea (53%). Despite high labor costs, the advanced automation makes the U.S. factory competitive. With the advent of the 'Trump 2.0 era,' where all imports face 10–20% tariffs and Mexican products are hit with 25%, LG is considering expanding its Tennessee plant.
However, tariffs are not the sole reason for the expansion. Reducing logistics costs, shortening product supply lead times, and strengthening ties with a Trump administration advocating for U.S. manufacturing resurgence are also key factors.
Samsung Electronics is also adapting swiftly to the new trade environment. A recent move to shift part of its U.S.-bound refrigerator production from its Mexico plant to its Gwangju plant in South Korea exemplifies this strategy. The decision follows President-elect Donald Trump’s announcement of a 25% tariff on Mexican imports, making production in Korea a more cost-effective option.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
