South Korean media: The US throws a 46% tariff bomb at Vietnam..."Where to relocate production bases", South Korean companies are in an emergency state. Local time on the 2nd, U.S. President Donald Trump announced retaliatory tariff measures. South Korean companies are very worried about being affected by the high tariffs of 46% imposed on their overseas core production base - Vietnam. Vietnam is a representative overseas production base for South Korean companies such as Samsung and LG. For companies that have relocated their production bases to Vietnam and other ASEAN countries, exports to the United States will inevitably encounter problems. Vietnam is Samsung Electronics' largest smartphone production base. The production capacity of the two regions, Bac Ninh and Thai Nguyen in northern Vietnam, accounts for around 50% of Samsung's total smartphone production. A considerable portion of the products exported to the United States are also produced here. Vietnam is also a major production base for LG. LG Electronics, LG Display, LG Innotek, and LG Chemical all have production entities in Vietnam. LG Electronics mainly exports televisions and home appliances from production sites such as Mexico to the United States, but it is understood that some home appliances are also exported directly from Vietnam. South Korean companies are paying close attention to the development of tariff negotiations while carefully discussing adjustments to the global supply chain. If the US maintains the 46% retaliatory tariff on Vietnam, it may be more advantageous for companies to choose production in Korea or other countries with relatively lower tariffs for export. They are weighing the pros and cons. According to sources within the business community: "We are making comprehensive considerations regarding the impact of tariffs and logistics costs, preparing to increase production in regions where cost increases are relatively low while reducing production elsewhere." Previously, the expansion of production bases in Vietnam by enterprises from South Korea and other countries has driven a significant increase in Vietnam's exports to the US. According to the Office of the United States Trade Representative (USTR), Vietnam's export volume to the US reached $136.6 billion in 2024, growing by 19.3%, higher than South Korea's export volume to the US ($131.6 billion). In the ranking of the US trade deficit in 2024, Vietnam ranked fourth after China, the EU, and Mexico. The US reported a trade deficit of $123.5 billion with Vietnam in 2024. This is precisely why the US government imposed high retaliatory tariffs on Vietnam. Trump has consistently condemned Vietnam as a "rogue trading abuser." In response, Vietnamese Prime Minister Pham Minh Chinh once said that as long as it benefits Vietnam, he hopes to visit Trump's Mar-a-Lago estate in Florida, USA, and "play golf with him all day." Source: Chosun Ilbo Original article: https://www.toutiao.com/article/1828364701143052/ Disclaimer: The article solely represents the views of the author.