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Samsung has reportedly suspended future investments in Mexico and is preparing to cut its regional workforce by up to 30% due to uncertainty over new tariffs proposed by President Trump. According to Roberto Vega Solís, president of Mexico’s Business Confederation in Tijuana, the company’s decision reflects concerns over rising production costs and economic instability.

The recently imposed 25% tariffs on aluminum and steel—key materials in Samsung’s refrigerator production—are expected to make manufacturing more challenging. Additionally, the White House is considering expanding tariffs on other Mexican-made goods, with potential implementation as early as April 2. Samsung operates two manufacturing plants in Mexico, one in Tijuana and another in Querétaro, both of which have received significant investment to support the production of household appliances.

Beyond tariffs, broader economic and regulatory issues in Mexico, including rising national debt and judicial reforms, have contributed to Samsung’s decision to freeze new investments. Meanwhile, speculation had emerged that LG Electronics might relocate parts of its home appliance production from Mexico to the U.S. However, recent reports indicate that LG is instead expanding its television manufacturing operations in Reynosa, Mexico, investing $100 million to double its production capacity.

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