The White House stated on Monday that President Trump’s proposed tariffs against Canada, Mexico, and China are “already working,” as several major corporations have committed to increasing their manufacturing operations in the United States.
Companies across the automotive, technology, and apparel industries are exploring ways to enhance their U.S. manufacturing presence in order to bypass the potential tariffs 25% on Canada and Mexico, which are currently on a 30-day hold, and a 20% tariff on Chinese imports.
According to the White House, these developments are “a direct result of President Trump’s commitment to put the American worker first and improve American competitiveness.”
Several leading automakers, including Honda, Hyundai Motor, Stellantis, Volkswagen, and Volvo Cars, are considering opening new factories in the U.S. or expanding their current production facilities to mitigate the impact of the tariffs.
Honda has already shifted its strategy, opting to manufacture its new Civic model in Indiana instead of Mexico, according to a report last week.
Production for this model is expected to commence in May 2028, with the Indiana facility projected to produce approximately 210,000 vehicles annually, according to a source.
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In January, Hyundai announced an expansion of its U.S. production efforts to counter the tariff effects, including plans to manufacture hybrid vehicles at its new factory in Georgia.
Stellantis, the parent company of Chrysler, Dodge, Fiat, and Jeep, reversed its decision to close its Belvidere, Illinois, plant after Trump’s tariff threats. The company has now committed to building a new midsize pickup truck at the facility.
Volkswagen is reportedly assessing potential U.S. production sites for its Audi and Porsche brands in response to the tariffs, according to German news outlet Handelsblatt.
Volvo’s CEO also stated last week that the company might shift part of its manufacturing to the U.S., depending on the tariffs Trump enforces.
Foreign electronics manufacturers have similarly begun considering increasing their U.S. production operations.
Taiwanese laptop manufacturer Compal Electronics has engaged in discussions with multiple southern states regarding a possible investment in U.S. manufacturing expansion, CEO Anthony Peter Bonadero said in January. Texas is among the leading candidates.
Inventec, another Taiwanese company specializing in artificial intelligence servers, is also evaluating potential U.S. investments, with Texas emerging as a prime location due to its proximity to Mexico and well-developed power infrastructure, according to company President Jack Tsai.
Korean news sources have reported that LG Electronics is considering relocating its refrigerator production from Mexico to Tennessee, while Samsung is contemplating shifting its dryer production from Mexico to South Carolina.
Luxury goods giant LVMH, which owns Louis Vuitton and Dior, is “seriously considering” expanding its U.S. manufacturing capacity, CEO Bernard Arnault stated in January.
Additionally, Italian liqueur company Campari is assessing ways to enhance its U.S. production efforts, according to its newly appointed chief executive, Simon Hunt, who made the announcement last week.
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