President Donald Trump has ramped up his so-called “tariff war” in his first 50 days in office, and the White House said on Mar. 10 that companies are seeking to expand their presence in the U.S. market to mitigate the impact of tariffs. As examples, it cited Samsung Electronics, Hyundai Motor, and LG Electronics among more than 10 multinational corporations.
Among them, Samsung Electronics is building a foundry plant in Texas, while Hyundai Motor’s electric vehicle plant, Hyundai Motor Group Metaplant America (HMGMA), in Georgia has been in trial operation since last year and is set to hold an opening ceremony later this month.
In a press release issued the same day, the White House said Hyundai Motor announced on Jan. 23 that it plans to further localize production in the United States to reduce the impact of tariffs and that the company will manufacture hybrid vehicles at its new plant in Georgia. It also cited a S. Korean media report saying Samsung Electronics, one of S. Korea’s largest tech companies, is considering relocating its dryer manufacturing facility from Mexico to S. Korea.
Meanwhile, Mexico, once a favored production base for companies targeting the U.S. market under the United States-Mexico-Canada Agreement (USMCA), is facing a drastic shift as President Trump pressures major trading partners, including Mexico, with tariff threats.
The White House also referenced reports that LG Electronics is considering moving its refrigerator production facilities from Mexico to Tennessee, where it already manufactures washers and dryers.
Last year, S. Korea emerged as the largest foreign investor in the U.S., pledging $21.5 billion in investments. Against this backdrop, President Trump’s second-term administration has been highlighting S. Korean companies as part of its effort to promote and justify its tariff policies.
Last month, the White House pointed to Hyundai Steel, a steelmaking affiliate of Hyundai Motor Group, as an example of companies weighing new plant construction in response to a 25% tariff on steel and aluminum.
Since Trump took office, executives such as Taiwan Semiconductor Manufacturing Co. (TSMC) CEO C.C. Wei, SoftBank’s Chairman Masayoshi Son, and Rodolphe Saadé, CEO of French shipping giant CMA CGM, have visited the White House and announced major investment plans after meeting with Trump.
This has led to speculation in Washington and S. Korea’s business community that announcements from S. Korean corporate leaders may be imminent. Some also view the White House’s repeated mention of South Korean companies as a way to highlight the impact of tariffs and exert pressure.
Meanwhile, President Trump has established a shipbuilding division within the White House and is expected to issue an executive order as early as this week to revive the U.S. shipbuilding industry, drawing attention to the potential role of S. Korean shipbuilders such as HD Hyundai.
