On January 14, South Korean tech giant Samsung Electronics announced the opening of its first washing machine factory in Newberry County, South Carolina. This move is seen as a strategic response to the high tariffs imposed by the U.S. government on imported appliances. The new facility is expected to help reduce the financial burden caused by these punitive duties.
The official launch ceremony took place on January 12, where Samsung celebrated the beginning of its U.S. manufacturing operations. Key attendees included Kim Hyun-suk, president of Samsung’s consumer electronics division, and South Carolina Governor Henry McMaster, among other local officials. This event marked a major milestone for the company as it expands its global footprint.
Samsung plans to invest $380 million (approximately 2.4 billion yuan) over the next three years. The factory aims to produce one million washing machines annually and create more than 1,000 jobs in the region. This investment not only supports the local economy but also strengthens Samsung's position in the competitive U.S. appliance market.
This decision comes in response to pressure from the U.S. International Trade Commission, which in November 2017 recommended that the Trump administration impose additional tariffs on large-scale washing machine imports from South Korean companies like Samsung and LG. These imports exceeded the 1.2 million unit quota, leading to an extra 50% tax. The request followed a petition from Whirlpool, a major U.S. competitor with around 40% market share, while Samsung and LG together hold about 30% and are gaining ground.
The Trump administration is set to announce its final decision on trade protections in February. Meanwhile, the South Korean government has taken action through the World Trade Organization, seeking annual penalties of at least $710 million (around 4.6 billion yuan) against the U.S. for what it views as unfair trade practices.
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