Yong Seok-woo, President of Samsung’s Visual Display Business, said the company’s manufacturing presence in Mexico—where the majority of Samsung TVs sold in North America are assembled—provides a significant buffer against the tariff hike unveiled by the U.S. administration last week. Mexico has largely been spared from the new 10% global baseline tariff and steeper “reciprocal tariffs” that are being applied more harshly to other trading partners, especially China.
“We are closely monitoring the evolving U.S. tariff landscape,” Yong stated. “Depending on how tariffs are implemented, Samsung will adjust its global production allocation accordingly. We have the flexibility to shift production across nearly 10 facilities worldwide.”
The contrast in tariff treatment is stark. China, where many rival brands like TCL and Hisense base much of their TV production, will now be subject to a combined 54% U.S. tariff—34% newly imposed, in addition to an earlier 20%. This puts Chinese electronics manufacturers at a potential price disadvantage in the critical North American market.
Samsung, the world's largest TV manufacturer, remains vigilant as it faces growing competition from these same Chinese brands, which continue to gain market share with aggressively priced models and expanding retail footprints.
Beyond the TV segment, the South Korean tech giant is also preparing for broader impacts from the U.S. tariff policy on other key areas of its business, including memory chips and smartphones. These sectors could experience weakened demand as import costs rise and consumer prices potentially follow.
The looming tariff effects spooked investors on Monday, contributing to a 4.3% slide in Samsung Electronics’ share price, part of a broader market downturn driven by fears of a deepening U.S.-China trade rift.
As global trade tensions escalate, Samsung’s diversified production strategy appears to offer a short-term cushion, but executives acknowledge that sustained tariff pressure could eventually ripple across its product lines and markets.