Like many companies, Samsung manufactures its TVs and home appliances at a factory in Mexico and then ships them to the United States under the regional free-trade agreement. Incoming US President Donald Trump has said time and again that he's going to tweak the North American Free Trade Agreement (NAFTA) to charge hefty tax on products imported from Mexico for sale in the country. He's been vocal about charging this tax from US companies like Ford and General Motors as well which build some of their cars for the US market at factories in Mexico.
Samsung can't sit idly by while such a major shift in the business environment looms on the horizon. North America happens to be its largest home appliance market. Around 30 percent of Samsung's total appliance sales are accounted for by customers in the United States where it also sells high-end products like its premium Quantum Dot TVs and the Family Hub refrigerators.
Samsung is now thinking about setting up a factory in the United States to manufacture TVs and appliances. “It is true we are considering the establishment of an appliance factory in the US. It is natural that an enterprise responds accordingly when a client nation’s policy changes,” a Samsung Electronics official told The Korea Herald, adding that “nothing has been confirmed yet.”
It's obviously in Samsung's best interests to have a plan in place to deal with Donald Trump's protectionist policies. The company has the largest market share in the US home appliance market so it has every reason to do whatever it can in order to hold on to that. Its rival LG has also hinted at the possibility of setting up a factory in the United States.
