Concerns over U.S. tariffs on Mexico

[Anchor]

President Trump's tariff pressure is now directed at neighboring countries, Canada and Mexico.

He announced that a 25% tariff will be imposed starting next month, which may seem like a distant issue, but it is already affecting our companies.

Reporter Park Kyung-jun has the details.

[Report]

The Kia factory in Mexico was completed in 2016.

It produces 250,000 vehicles annually, with more than half, 150,000, going to the United States.

POSCO manufactures steel products, while Samsung and LG produce home appliances at their local factories in Mexico.

For our companies, the proximity to the U.S. and cheap labor are attractive, but Trump has announced a 25% tariff.

[Donald Trump/U.S. President/Jan. 20, local time: "We are thinking in terms of 25% on Mexico and Canada. (When do you think you would enact?) I think February 1st."]

About 90 of our companies operating in Mexico are expected to face increased cost pressures if the tariffs are actually imposed.

Companies that have previously exported automobiles and parts from Mexico to the U.S. without tariffs are also worried.

They have been benefiting from tariff-free trade under the trade agreement between the U.S., Mexico, and Canada, but Trump wants to renegotiate it.

[Employee of a Korean company in Mexico/Voice Altered: "It's so sudden that our clients don't have enough time to come up with countermeasures, and the situation is quite chaotic. Honestly, how the performance for 2025 will turn out is very uncertain..."]

While the pace and method may be adjusted, the biggest concern is that the tariffs are too high compared to profits.

[Um Gi-woong/Lawyer in Mexico: "It's a burden for producers. For our Korean companies here in Mexico, the profit margins for home appliances and TVs are around 5% to 10%, so it will be very tough."]

Companies are considering options such as changing their export or production bases or adjusting prices.

KBS News, Park Kyung-jun.