The White House on Monday said President Trump’s threatened tariffs against Canada, Mexico and China are “already working” as major companies have pledged to boost their American manufacturing efforts.
Several firms across the automotive, technology and apparel industries are discussing ways to boost their US manufacturing to avoid the hefty 25% tariffs Trump has threatened on Canada and Mexico – which are currently on a 30-day pause – and the 20% levy on China.
The talks are “a direct result of President Trump’s commitment to put the American worker first and improve American competitiveness,” the White House said on Monday.
Multiple major auto firms — including Honda, Hyundai Motor, Stellantis, Volkswagen and Volvo Cars — are looking to open new US factories or boost their production efforts at existing sites to minimize any pain from the tariffs.
Honda became one of the first companies to cave, scrapping plans to produce its new Civic model in Mexico in favor of Indiana, according to a Reuters report last week.
Production of the new vehicle will reportedly start in May 2028, and the Indiana facility is expected to churn out around 210,000 vehicles each year, a source told the outlet.
In January, Hyundai announced it planned to further its US production plans to avoid the impact from tariffs, and that it would manufacture hybrid vehicles at its new factory in Georgia.
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Stellantis, which owns Chrysler, Dodge, Fiat and Jeep, in January reversed plans to shutter its Belvidere, Ill. plant after Trump threatened the stiff tariffs. It has committed to building a new midsize pickup truck at the Illinois facility.
Volkswagen is reportedly considering new US production sites for its Audi and Porsche brands due to the tariffs, according to German news outlet Handelsblatt.
Volvo’s chief executive last week said the automaker may move some of its manufacturing to the US, dependent on the tariffs that Trump imposes.
Overseas electronic giants have also discussed boosting their US production efforts.
Compal Electronics, a Taiwanese laptop maker, has spoken to several southern states about a possible investment into expanding its manufacturing, CEO Anthony Peter Bonadero said in January.
At the time, he said Texas was a leading candidate.
Inventec, another Taiwanese firm that makes artificial intelligence servers, has also been looking into making an investment in the US, and is also eyeing Texas because of its proximity to Mexico and power infrastructure, President Jack Tsai said in January.
LG Electronics is considering moving production of its refrigerators from Mexico to Tennessee, while Samsung is weighing whether it should shift production of its dryers from Mexico to South Carolina, according to Korean news outlets.
Luxury conglomerate LVMH, which owns Louis Vuitton and Dior, is “seriously considering” boosting its production capacity in the US, chief executive Bernard Arnault said in January.
Italian liqueur group Campari is evaluating ways to boost production efforts in the US, its new chief executive, Simon Hunt, said last week.
And Essity, the Swedish hygiene product and tissue maker, said it could move more of its manufacturing efforts into the US if the tariffs on Mexico and Canada are introduced, its CEO said in January.
With Post wires
