LG Electronics is grappling with anticipated tariffs from the administration of US President Donald Trump on imported televisions. However, building a new manufacturing facility in the US immediately would be challenging due to logistical hurdles, an official said Tuesday.

Baik Sun-pil, the LG Electronics vice president leading the company’s TV product planning division, made the remarks as the company unveiled its 2025 lineup of organic light-emitting diode and quantum nanocell-emitting diode TVs at a press briefing at LG Science Park in Seoul.

“Currently, no TV manufacturers have production facilities in the US. Due to free trade policies, most TV production is concentrated in Mexico, Southeast Asia and China,” Baik told reporters, emphasizing that tariffs are not just LG’s problem alone.

“That being said, building a TV factory in the US right now isn’t easy,” he added. “In order to produce a TV, components such as panels and system-on-chips must be sourced along with other materials, and setting up the necessary infrastructure in the US immediately is extremely challenging.”

As a result, LG is closely monitoring the tariff situation rather than making any abrupt decisions on a new plant decision or relocating production.

One option is shifting production to countries where tariffs are likely to be lower, incorporating LG’s existing manufacturing infrastructure. However, Baik acknowledged that providing further details on specific production strategies would be difficult at this time.

LG currently operates a TV manufacturing plant in Reynosa, Mexico, serving the North American market. If Trump goes ahead with his plan to impose 25 percent tariffs on imports from Mexico — execution of which has been delayed until April 2 — it would make TVs from Mexico pricier, impacting LG's profit.

At the briefing, Baik also addressed the rapid growth of Chinese TV manufacturers in the premium market, which poses a concern for Korean electronics giants like LG and Samsung Electronics.

But Baik asserted that the Chinese manufacturers still lag behind in core technological capabilities.

“While Chinese companies gained dominance in (hardware like) panels, they currently lack independent technology in SOCs and operating systems,” said Baik, noting Chinese companies rely on Korean and American OS solutions.

LG on Tuesday unveiled its latest OLED and QNED televisions, featuring upgraded artificial intelligence and display technology.

LG is pursuing a "dual-track" strategy of focusing on both OLED and QNED TVs to secure leadership in the premium TV market. It has maintained the top spot in OLED TVs for 12 consecutive years, according to market research firm Omdia, accounting for 52.4 percent of global OLED TV shipments last year.

By Ahn Sung-mi (sahn@heraldcorp.com)