Although the Trump Administration has not specifically targeted any South Korean company, many have preemptively announced potential investment plans to ward-off criticism. Potential investments plans could however sour stemming from risks from the Trump administration’s trade policies.
According to a source familiar with the matter at hand, Samsung Electronics Co Ltd is mulling to build a plant in the U.S. for its home appliances business.
The move is the latest response by Samsung to criticism about imports stemming from U.S. President Donald Trump.
The source further stated that specifics such as where, when and the quantum of investment Samsung will sink in, is yet to be decided.
The source preferred the cover of anonymity since he was not authorised to speak to the media.
The new U.S. administration has threatened to levy an import tax while U.S. President Donald Trump has come down strongly on some of the world’s biggest manufacturing companies who manufacture abroad for U.S. consumers.
This move has triggered a rash of promises by companies to boost their investment in the United States.
Samsung has disclosed it continues to “evaluate new investment needs” in the United States without disclosing any specific plans.
In November 2016, the company had stated it would invest more than $1 billion in its chip manufacturing plant in Austin, Texas by the end-June.
Although Trump hasn’t singled out any South Korean firms, many have embarked on a preemptive move to ward-off criticism. Last month, the Hyundai Motor Group had stated it plans of investing $3.1 billion in the U.S. spread across five years.
In January, LG Electronics Inc had stated it could potentially invest in a manufacturing base in the US within the first half of the year while warning of risks stemming from the Trump administration’s trade policies.
“This is something that has been under consideration for years at LG, but the current political situation is simply accelerating that timeline for a decision,” said a source who is familiar with the matter at hand.
When asked to respond to requests for comments, LG’s spokeswoman declined comment.