Published On: Wed, May 2nd, 2018

U.S. tariff affects Samsung plant in Querétaro

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The Samsung plant in Queretaro recorded a decrease of around 5 percent in its production of washing equipment so far in 2018, mainly due to the effect on the segment of the tariff recently applied by the United States in the Import of washing machines, said Woo Soo Kim, senior vice president and director of the Samsung plant in Queretaro.

However, he expressed his optimism towards the future.

“Since 2013 we are doing very well, but this year has been a bit difficult because the US market has gone down, so this year we have decreased in quantity (production),” he said in an interview. “But, we think that in the second semester our figures will rebound.”

At the Queretaro plant, the Korean company manufactures the dryer of the equipment, which is assembled together with the washing machine that comes from a sister plant.

The taxes that the US government is applying to the washing machines affect the final process of the systems that are marketed in one piece, and this ultimately affects the plant in Queretaro.

Last January, President Donald Trump signed a decree that imposes a 50 percent tariff on imports of larger residential washing machines, although the rate will be gradually reduced until it disappears after three years.

The executive added that by 2019, it is estimated a better performance in the US market, which will allow a more favorable result for this Queretaro based company.

(Photo: commons wikimedia)

(Photo: commons wikimedia)

 

Source: elfinanciero.com.mx



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