Samsung, LG may move some home-appliance manufacturing from Mexico to US, paper says
Samsung said it plans to monitor the situation and respond flexibly, as it operates production bases in many regions of the world. LG Electronics said it plans to respond to changes in the market by adjusting the production system and production sites.
https://finance.yahoo.com/news/samsung-lg-may-move-home-094156460.html
AND
Stellantis responds to Trump’s tariff threat, will restart Illinois plant and build new Durango in Detroit
Has the US decided that they no longer need Canada & Mexico in a NAFTA type agreement when they can simply bully companies into moving everything to the US anyways??
They would simply mfr parts in Monterrey, then assemble in Texas and call it Made in USA. They can use flex in transfer pricing to limit tax exposure. Most of the labor would stay in MX and robots would assemble.
Don’t know what percentage transportation costs are for larger items like appliances and autos but, if robots are going to assemble most things going forward, companies should have plants in every country where they sell a large number of their products. Avoid tariffs, provide at least some jobs in the local market. The old days of travelling the globe looking for the most impoverished nations to get cheap labor is near it’s end. Cheaper to have multiple local plants and not have to ship stuff all over the globe.