The White House said on Monday that President Trump's threatening tariffs on Canada, Mexico and China were “already working” as big companies pledged to boost US manufacturing activities.
Several companies in the automotive, technology and apparel industry are debating how to boost US manufacturing by avoiding the enormous 25% tariffs Trump has threatened in Canada and Mexico during the 30-day suspension.
The talks are “a direct result of President Trump's commitment to putting American workers first and improving America's competitiveness,” the White House said Monday.
Several major auto companies, including Honda, Hyundai Motor, Stellantis, Volkswagen and Volvo, are opening new US factories and promoting production efforts on existing sites to minimize pain from tariffs.
Honda has abolished plans to scrap plans to produce new civic models in Mexico, which is favored by Indiana, according to a Reuters report last week.
Production of new vehicles reportedly begins in May 2028, with the Indiana facility expected to fire around 210,000 vehicles each year, sources told the outlet.
In January, Hyundai planned to promote US production plans to avoid impacts from tariffs and to manufacture hybrid vehicles at a new factory in Georgia.
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In January, Stellantis, who owns Chrysler, Dodge, Fiat and Jeep, reversed plans to close the plant in Belvidere, Illinois after Trump threatened hard tariffs. They are committed to building a new medium-sized pickup truck at their Illinois facility.
According to German news outlet Handelsblatt, Volkswagen is reportedly considering a new US production site for Audi and Porsche brands due to tariffs.
Volvo's chief executive last week said the automaker could move some of its manufacturing into the United States.
Foreign electronic giants are also discussing promoting US production efforts.
Taiwanese laptop manufacturer Compal Electronics spoke to several southern provinces about the potential investment in expanding manufacturing, CEO Anthony Peter Bonadero said in January.
At the time, he said Texas was the main candidate.
President Jack Tsai said in January that Inventec, another Taiwanese company that manufactures artificial intelligence servers, was also considering investing in the US, and that he is focusing on Texas because of its proximity to Mexico and power infrastructure.
LG Electronics is considering moving refrigerator production from Mexico to Tennessee, but according to a Korean news outlet, Samsung is considering whether to shift hair dryer production from Mexico to South Carolina.
LVMH, which owns Louis Vuitton and Dior, is “seriously considering” to boost production capacity in the US, CEO Bernard Arnaud said in January.
Italian liqueur group Campari is evaluating ways to boost production efforts in the United States, its new CEO, Simon Hunt said last week.
And Essence, a Swedish sanitary products and organizational manufacturer, said that once tariffs are introduced in Mexico and Canada, manufacturing efforts could be moved to the US, its CEO said in January.
With post wire
