Samsung has announced it will suspend future investments in Mexico and cut its workforce by 30%, citing growing uncertainty surrounding tariffs proposed by former U.S. President Donald Trump, according to Roberto Vega Solís, president of Mexico's Business Confederation in Tijuana.

The decision follows Trump's recent move to impose a 25% tariff on aluminum and steel imports — critical materials for Samsung's refrigerator production. Vega Solís described the situation as “a highly uncertain business environment,” stating, "It's difficult for companies like Samsung to plan when policies shift overnight."

Samsung operates two manufacturing plants in Mexico: one in Tijuana, producing televisions, and another in Querétaro, focused on household appliances, including refrigerators. The company has invested millions into these facilities, but production challenges and trade instability have forced a strategic pause.

The White House is also reportedly considering additional tariffs on other Mexican-made goods, with April 2 marked as a potential enforcement date.

Vega Solís added that Mexico's rising national debt and judicial reforms are further unsettling factors, contributing to Samsung's decision to freeze future investments.

Competitor LG Electronics, meanwhile, is expanding its operations in Mexico despite the uncertainty. Contrary to earlier rumors of a U.S. production shift, Reuters reports LG is investing $100 million to double capacity at its Reynosa facility near the Texas border, aiming to produce 6.5 million OLED TVs annually for the North American market.

Samsung's pullback — alongside LG's contrasting move — signals a pivotal moment for electronics manufacturing in Mexico, as companies rethink strategies amid evolving trade tensions.