Trump's 'tariff bombing' forewarning...Korean companies are 'super nervous'

Mexican factory-produced vehicles export 60% to the U.S.

Major Companies such as POSCO and Samsung Electronics to Enter Mexico

U.S. export outposts to low labor costs, tariff-free agreements

[Anchor]
South Korean companies that have entered Mexico and Canada are also on alert due to U.S. President-elect Trump's announcement of a tariff bomb.

In particular, many companies have made Mexico an outpost for U.S. exports, so if tariffs become a reality, a big blow is expected.

Reporter Choi Ah-young reports.

[Reporter]
Kia's Mexican factory, which was completed in 2016.

Last year, 150,000 of the 250,000 vehicles produced at the plant were exported to the United States.

POSCO also set up an automobile steel plate factory in Mexico last year to target the U.S. market.

In addition, major companies, including Samsung Electronics and LG Electronics, have production bases in Mexico.

This is because labor costs are low and Mexico, which signed a tariff-free agreement with the United States to avoid sanctions on China trade during Trump's first term, has emerged as an outpost for exports to North America.

However, as the second Trump administration warned of tariffs on Mexico and Canada, our companies were on fire.

[Yang Joo-young / Assistant researcher of the Trade Strategy Office at the Korea Institute of Industrial Economics and Trade: Facing high tariffs, the product's price in the U.S. market increases and demand decreases, causing the sales of the companies to fall...]

In addition, the U.S. trade barriers could extend to Vietnam, a supply chain hub for South Korean companies, which is even more worrisome.

As a result, the government and companies are struggling to come up with countermeasures.

[Jeong In-kyo / Minister of Trade, Industry and Energy: We have already prepared various scenarios that can respond to U.S. policy. In the future, we plan to have an outreach (underwater contact) with the United States at the best time.]

Trade uncertainty, which was feared ahead of the launch of a second Trump administration with its own priorities, is growing.

I'm YTN's Choi Ayoung.

Reporter for shooting
: Lee Dong-gyu