LG Electronics is grappling with the potential impact of tariffs on imported televisions under the administration of former U.S. President Donald Trump. However, establishing a new TV manufacturing facility in the United States remains a difficult endeavor due to logistical and supply chain challenges, a company official stated on Tuesday.
Baik Sun-pil, vice president of LG Electronics’ TV product planning division, addressed the issue as the company unveiled its 2025 lineup of organic light-emitting diode (OLED) and quantum nanocell-emitting diode (QNED) televisions at a press briefing in Seoul.
“Currently, no TV manufacturers have production facilities in the U.S. Due to free trade policies, most TV production is concentrated in Mexico, Southeast Asia, and China,” Baik said, stressing that the tariff issue is not exclusive to LG.
He acknowledged that building a factory in the U.S. would be difficult, citing the need to source critical components such as panels and system-on-chips. Establishing the necessary infrastructure, he noted, would take significant time and investment.
Instead of rushing into new production plans, LG is closely monitoring the tariff situation. One possible approach involves shifting production to countries with lower tariffs while utilizing the company’s existing manufacturing infrastructure. However, Baik did not provide details on specific relocation strategies.
LG currently operates a TV manufacturing plant in Reynosa, Mexico, which supplies the North American market. If Trump moves forward with his proposed 25% tariffs on imports from Mexico, which have been delayed until April 2, the cost of Mexican-made TVs could rise, potentially impacting LG’s profitability.
During the briefing, Baik also addressed the growing presence of Chinese TV manufacturers in the premium market, a competitive challenge for Korean electronics giants like LG and Samsung. While acknowledging China’s dominance in panel production, he emphasized that Chinese manufacturers still lack independent technological capabilities in key areas such as system-on-chips (SOCs) and operating systems, where they remain reliant on Korean and American solutions.
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