Korean firms scramble over tariffs

[Anchor]

With the implementation of tariffs by the United States, our companies are also unable to avoid the impact.

Companies with production bases in places like Mexico have begun to activate emergency measures one after another.

Reporter Jung Jae-woo has the story.

[Report]

Samsung Electronics has been manufacturing washing machines at its low-cost plant in Querétaro, Mexico, to sell in the United States.

In response to the 25% tariff imposed on Mexico, they have started to reduce production at this facility.

Instead, they plan to increase the operating rate of their washing machine factory in Newberry, USA.

This is their 'Plan B' that they have pulled out in anticipation of the tariffs.

About 90 of our companies with production bases in Mexico are in a similar situation.

LG Electronics, which produced home appliances in Mexico, and Kia, which produced 270,000 vehicles last year and sold 140,000 in the United States, are all adjusting their export volumes to the U.S.

Many companies have produced as much as possible before the tariff was imposed and sent it to the U.S.

They plan to endure with their inventory for the time being while preparing countermeasures.

[Jang Sang-sik/Director of the International Trade and Commerce Research Institute, Korea International Trade Association: "They will probably establish response plans based on the expected tariff imposition deadlines, such as one month, three months, six months, and one year. Production costs, logistics costs, and tariffs, etc...."]

If the situation prolongs, our total exports are estimated to decrease by more than 220 million dollars, which is about 32 billion won.

Additionally, on Mar. 12, a 25% tariff on steel and aluminum is scheduled to be imposed, and next month, reciprocal tariffs and other tariffs directly imposed on our products are also expected to follow.

Minister of Trade, Industry and Energy Ahn Duk-geun visited the U.S. at the end of last month to request exemption or postponement of tariffs, but has not yet received a specific response from the U.S.

However, he announced that a multilateral and regular consultative body has been established to discuss cooperation measures with the U.S. regarding tariffs, shipbuilding, energy, and more.

KBS News, Jung Jae-woo.