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Samsung seeks ways to cushion blow from U.S. tariffs

Published: 06 Apr. 2025, 16:05

Samsung Electronics' smartphones are on display at the a store in southern Seoul on Feb. 28. [YONHAP]

Tech giant Samsung Electronics may need to overhaul its global production strategy as new U.S. reciprocal tariffs could significantly affect its smartphone business, industry sources said Sunday.

Last week, U.S. President Donald Trump announced plans to impose a minimum 10 percent "baseline" tariff on all imports to the United States and country-specific "reciprocal" tariffs that include 25 percent duties for Korea.

The reciprocal tariffs, covering most product categories except some products like vehicles, semiconductors and pharmaceuticals, are set to take effect Wednesday.

Experts and industry analysts noted that Samsung Electronics needs to cope with the U.S. tariff regime by utilizing its policy of diversifying production bases.

Samsung, the world's largest smartphone maker, produces around half of its smartphones in Vietnam, which faces a 46 percent reciprocal tariff on goods entering the U.S. The rest of its smartphone production is spread across India, Brazil, Indonesia and Korea.

India faces a 26 percent tariff, Korea 25 percent and Brazil just 10 percent, making it a potentially attractive hub for serving the U.S. market.

Sources suggest Samsung Electronics may consider increasing production in India, Brazil and Korea, especially for premium models intended for U.S. consumers.

Brazil, in particular, stands out due to its low tariffs and geographic proximity to the United States, they added.

The company is expected to reassess its production policies ahead of the summer launch of its next-generation foldable smartphones, but for now, it is proceeding cautiously.

"Nothing has been decided yet," said a spokesperson from Samsung Electronics.

Yonhap