LG Electronics is likely to relocate some of its production from Mexico to the U.S as they desperately search for a way to reduce the impact of tariffs on products going into the US market where they have strong consumer market share.

KB Securities analyst Jeff Kim claims that the move is in response to President Trump’s reciprocal tariffs.

The South Korean consumer-electronics giant has recently completed expanding and adjusting assembly lines at its plant in Tennessee to manufacture refrigerators, ovens, and other home appliances, which are currently being built in Mexico, if the U.S. tariffs take effect, Kim says.

LG Electronics Chief Executive Officer (CEO) Cho Joo-wan claimed yesterday that his company is fully ready to expand production facilities in the United States as a way to deal with Washington’s tariff policies.

At this stage it’s not known whether the move will result in price rises with insiders tipping that lower logistic costs could benefit consumers.

“We have secured building sites for refrigerator and oven production at our Tennessee plant as a last option when the U.S. tariff on Mexican goods takes effect,” Cho told reporters after a general shareholders meeting in Seoul.

“We are currently maintaining the site and constructing some temporary buildings he claimed.