Japanese air-conditioner maker Daikin Industries says it may shift the export destination of products it makes in Mexico to non-US markets.
This comes after US President-elect Donald Trump on Monday said he will slap a 25-percent tariff on all products arriving in the US from Mexico.
Daikin Industries' plants in Mexico mainly make items for the United States.
Daikin Chairman and CEO Togawa Masanori said he wasn't surprised by Trump's statement as he had previously vowed to impose new import levies.
He added that one option is to switch its production lines to focus on South American markets instead.
The company also announced it will set up a joint venture with Copeland, a US manufacturer of air conditioners and refrigeration equipment.
The US-based venture will sell energy-saving compressors in the country. The two partners are also in discussions to build a production plant in the US.
Meanwhile, the president of Japan's Mitsubishi Electric has told reporters that if Trump's tariffs are implemented, the company won't be able to avoid their impact.
Uruma Kei, President and CEO, Mitsubishi Electric said: "We expect it will be difficult to plan relocating production from Mexico to the US immediately. We'd like to consider countermeasures while keeping a balance between everything, such as cost and price competition in the US."
Products made at Mitsubishi's Mexican facilities include elevators and air conditioners for export to the US.
This comes after US President-elect Donald Trump on Monday said he will slap a 25-percent tariff on all products arriving in the US from Mexico.
Daikin Industries' plants in Mexico mainly make items for the United States.
Daikin Chairman and CEO Togawa Masanori said he wasn't surprised by Trump's statement as he had previously vowed to impose new import levies.
He added that one option is to switch its production lines to focus on South American markets instead.
The company also announced it will set up a joint venture with Copeland, a US manufacturer of air conditioners and refrigeration equipment.
The US-based venture will sell energy-saving compressors in the country. The two partners are also in discussions to build a production plant in the US.
Meanwhile, the president of Japan's Mitsubishi Electric has told reporters that if Trump's tariffs are implemented, the company won't be able to avoid their impact.
Uruma Kei, President and CEO, Mitsubishi Electric said: "We expect it will be difficult to plan relocating production from Mexico to the US immediately. We'd like to consider countermeasures while keeping a balance between everything, such as cost and price competition in the US."
Products made at Mitsubishi's Mexican facilities include elevators and air conditioners for export to the US.
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Summary
Japanese companies Daikin Industries and Mitsubishi Electric consider shifting production from Mexico to non-US markets due to potential 25% tariffs proposed by US President-elect Trump. Daikin's Mexican plants primarily produce goods for the US market, while Mitsubishi makes elevators and air
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ID: 191eaeb4-68e3-4ddf-80e6-9b0c781c7611
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20241127_B04/
Created: 2024/11/28 07:00
Updated: 2025/12/08 08:25
Last Read: 2024/11/28 10:01