A car production line
Hyundai, Honda, other automakers consider production in U.S. to avoid Trump tariffs
Some top automakers including Honda, Hyundai, and others have declared interest in relocating some of their production to the U.S.
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According to a document released by the U.S. government house on 10 March, the move is a strategy to avoid the new Trump tariffs imposed on foreign products coming into the U.S.
A race for survival
President Donald Trump has been issuing threats of tariffs he intends to impose on imports from neighboring countries.
Since the U.S. is a strategic country in terms of global trade, the companies have found a way to avoid the tariffs by simply moving some of their production.
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For Honda, it is producing its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to the White House document.
Hyundai has also said it will localize production in the U.S. to minimize any tariff impact. It also said it would make hybrid vehicles at its new factory in Georgia.
At the same time, the German carmaker Volkswagen is considering setting up production sites in the U.S. for its high-end Audi and Porsche brands to avert fallout from tariffs.
Volvo Cars may also move some production to the U.S. depending on tariffs imposed by President Donald Trump, the document reveals.
Other companies
Other companies considering moving to the U.S. are electronics giants Samsung and LG. Samsung is considering moving the manufacturing of dryers from its Mexico plant to its plant in South Carolina.
Similarly, LG may move its manufacturing of refrigerators from Mexico to its factory in Tennessee, which makes washing machines and dryers.
It is possible that more tech companies outside of the U.S. will start migrating as well to avoid the tariff crisis of the Trump administration in the coming months.
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